An investor’s guide to stress-free renovations

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Whether you are preparing to sell, flipping a fixer-upper, upsizing or downsizing, the same rules apply. Just Property chief executive officer, Paul Stevens shares practical guidance to help homeowners renovate wisely, avoid overcapitalising and appeal to future buyers.

Things to think about if you’re renovating before selling

If you’re preparing a home for sale, your goal is simple: spend as little as possible to remove objections and help buyers fall in love with the property. Very few pre-sale renovations return more than 100% of what you spend, so every rand must work hard.

Start with the basics. Fix leaks, cracks, broken cupboards, dodgy light fittings and any visible signs of damp. These are small jobs compared to a new kitchen but they immediately reassure buyers that the home has been cared for. Fresh, neutral paint, clean grout and well-maintained floors can transform first impressions at relatively low cost.

Next, look at “curb appeal” and outdoor living. A neat garden, trimmed hedges, clean paving and a pressure-washed driveway signal value before buyers even step inside. Where budget allows, a simple, low-maintenance outdoor entertainment area (maybe a tidy patio with decent lighting and seating) can make the home feel bigger and more usable.

Be very careful about big-ticket items. A full kitchen or bathroom overhaul just before selling often becomes an emotional decision (“Let’s do it properly”) rather than a financial one. In many suburbs, a R150,000 kitchen going into a R1m home will not translate into a proportionate increase in selling price.

Banks and other lenders consistently warn against overcapitalising – the total you paid for the home plus the improvements you make should never exceed the ceiling price for your area. For sellers, the value-adding sweet spots are usually:

• Repairs and fresh finishes
• Modern lighting and hardware
• Small updates in the kitchen and bathrooms (taps, cupboard doors, worktops)
• Visible security (good perimeter, lighting, alarm) in line with what buyers expect in your price band

Before you commit, ask your Just Property agent what similar homes in the area are selling for, and which upgrades buyers are actually choosing and paying for. That market insight is your best defence against overcapitalisation.

Things to think about if you’re renovating to flip a property

If you are flipping, you are a property investor first and a renovator second. Your profit lies in buying at the right price, choosing the right level of renovation and exiting at the right value (not in creating your dream home).

Start with a simple formula: Purchase price + renovation cost + all transaction and holding costs < realistic resale price. The gap between the total cost and the resale price is your profit. If there is no gap, you’re not flipping; you are working for free.

Focus on properties where most of the work is cosmetic rather than structural. The best returns come from homes that look tired but are fundamentally sound; where paint, floors, kitchens, bathrooms and décor do the heavy lifting.

Do a thorough due diligence. Check the roof, foundations, plumbing, electrics and compliance certificates. Allow for professional inspections and, if necessary, engineer’s input. Surprises behind walls can erase your margin overnight.

On the budgeting side, many experienced builders recommend adding a contingency of around 20 to 30% to your base renovation budget to cover unexpected costs such as rotten timber, outdated plumbing and wiring or price increases on materials.

When you plan the actual work, aim for “maximum impact, minimum spend”:

• Modern, but neutral kitchens and bathrooms
• Durable flooring
• Good storage and lighting
• Secure, low-maintenance outdoor areas

Avoid highly personal finishes, luxury brands and anything that only a niche buyer will appreciate. Your future buyer may love the area and layout but hate your taste; the more timeless your choices, the broader your resale market.

Finally, treat your contractors as partners in the investment. Master Builders Association guidelines stress detailed planning, written quotations, clear specifications and using reputable, properly registered builders – measures that protect both your budget and your schedule.

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Things to think about if you’re renovating for a growing family

When your family is expanding, quality of life becomes as important as return on investment. You may plan to stay put for many years but future resale value still matters – particularly if this home is your main wealth-building asset.

The renovations that add the most value for families are typically more floor space, extra bedrooms, an additional bathroom, open-plan living and a safe, functional garden.

Think in zones rather than rooms. Can you create:

• A generous family living space connected to the kitchen?
• A separate quiet area or study that can double as a guest room?
• A play or teen area that can evolve over time?

Storage is another family essential. Built-in cupboards, linen storage and clever under-stair or garage storage all make daily life easier and quietly increase perceived value. In our experience, storage and natural light are two of the most cost-effective upgrades, especially in smaller homes.

In South Africa, a swimming pool can add significantly to the value of your house, but check with property professionals in your area that you’re not pricing your home out of the market.

The same goes for big layout changes (moving walls, adding a storey, altering the roofline). Here it’s important to consult an architect and to make sure your plans are approved by your local council.

I can’t stress enough the importance of using qualified professionals and reputable contractors for structural, electrical and plumbing work, rather than trying to save by doing (any of) it yourself.

And remember: even when you are renovating “for yourself”, bold, highly specific finishes on fixed elements (tiles, built-ins, sanitaryware) can make a later sale harder. Express personality in paint, décor and furniture; keep the expensive, permanent items relatively timeless.

Things to think about if you’re renovating to downsize

Many South African homeowners reach a point where the family home feels too big or too demanding but they’re not ready to leave the area they love. A great option at this stage of life is to renovate to create a more manageable main home as well as a separate-entrance flatlet: you simplify your lifestyle, unlock rental income and make the property attractive to a wider range of future buyers.

Start by mapping your future needs: If you plan to age in place, prioritise step-free access where possible, wider doorways, good lighting, easy-to-use hardware/fittings, a walk-in shower and low-maintenance finishes. These changes support independence now and later.

For the flatlet, design as if you were creating a small, high-quality home: a decent kitchenette, comfortable bathroom, storage, privacy, a defined outdoor space and safe parking or access. There is strong demand for well-designed secondary units on a property, whether for adult children, parents or tenants, and they are consistently mentioned among value-adding projects when executed properly.

Don’t forget to get the legal and technical aspects right though. Check zoning, municipal rules and body-corporate or estate rules before you build or convert. Use qualified electricians and plumbers to ensure the new unit complies with safety standards and can be separately metered if needed. Master Builders recommend detailed written contracts and clear scope for any addition or conversion, including how defects and extras will be handled.

From a value perspective, the question again is overcapitalisation. What is the realistic ceiling price for homes with similar cottages or flatlets in your suburb? How much rental income could the unit command, and how does that compare to the cost of building it? A Just Property agent who understands both sales and rental demand in your area can help you run these numbers before you commit.

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Bringing it all together

As the old saying goes, “failing to plan is planning to fail”. It is vital to take the time upfront to think carefully about your goals.”

Whether you are renovating to sell, flip, expand or downsize, the most important steps are the same:

• Get clear on your goal and buyer profile
• Understand your property’s current and potential value
• Set a realistic budget with a contingency for surprises
• Use qualified professionals for design, structural work, plumbing and electrics
• Avoid overcapitalising by matching your spend to the neighbourhood and likely buyer

If you are considering a renovation and want to understand how it will affect your property’s value (or what buyers in your area are looking for right now), speak to your nearest Just Property office. Our teams can help you plan changes.