If you plan to live in a property for 10 years or more, it is difficult to imagine that you could overcapitalise when renovating, as the value of your property will have risen due to rising land values and demand in the market. However, it is still worth considering the effect that your renovations will have on the value of the property. There is no point wasting precious dollars on improvements that don’t increase your eventual sale price. And worse, some improvements can be detrimental to the value of your property.
For instance, if you live in an area that is popular with families, outdoor living space will be seen as a major benefit when people are comparing homes for sale. But if your renovation extends so far into your outdoor space that there is no room for children to play, you are limiting the eventual market for your property and adversely affecting its resale value.
Another factor you should …