Homeowners have traditionally made capital gains by buying do-ups and putting in a lot of hard work. That’s more difficult with new-build homes, but clever Kiwis are finding they can still add value, experts, including one of the winners of the Block NZ, have told OneRoof.
Covenants on new-build terraces, units and apartments often limit what buyers can do, and the usual value-add areas – kitchens and bathrooms – are often already of a high standard.
Nonetheless Harcourts Hobsonville agent Anna Byron has seen owners of brand-new properties add value with clever alterations and better presentation. “Some of the properties can be quite cookie-cutter so even simple things such as good quality window dressings and shutters can help make the house stand out from the crowd and add a more premium feel,” she says.
In Hobsonville, in west Auckland, Byron has seen owners of apartments and smaller townhouses add a kitchen island. “Not only does it give them a more usable cooking space, but can also provide additional storage and even a dining space,” she says.
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Adding heat pumps or ducted heating is another great way to add value to a new home, she says.
One of her Hobsonville sellers added a partition wall in the second bedroom, creating an office space that could also be used as a third child’s bedroom. “[It] was a pretty cost-effective solution to create an extra room in the property. Legally, we couldn’t market it as a third bedroom due to the placement of the door, but buyers certainly saw value in having a separate work space without sacrificing a bedroom.”
She advises homeowners to get in an interior designer as well a qualified builder, and to keep a record of alterations and the tradespeople. “Always get a qualified tradesperson in to complete the work and keep any documents provided for on-sell purposes. The more information we can provide to purchasers to give them peace of mind, the smoother the transaction will be for all parties,” she says.
Block NZ champ and property developer Caleb Pearson, right, with his Waihanga Group partner, quantity surveyor Logan James. Photo / Supplied
Block NZ champion and property developer Caleb Pearson says that homeowners have to find creative ways to add value to a new home, but it can be done. “The traditional Kiwi mindset when it comes to property has always been, do a bit of DIY and put in some sweat equity to get ahead,” he says.
“Whilst these new homes suit the modern lifestyle, you have to be more creative to make your property stand out and add that value.”
Pearson, who is now launching his second new-build project, nine terraces on Auckland’s North Shore, says new-build homeowners should start off by trying to improve storage. “We’ve got more and more stuff, but homes are getting smaller and smaller. Showcasing that you have efficient use of storage makes sense,” he says.
A great example of creating storage and also adding extra living space is the garage makeovers in the current series of The Block, says Pearson. Contestants Chloe and Ben have turned the garage in their new-build house into a home cinema, but garage spaces can also be turned into kids’ play rooms, home gyms, laundries, and even offices, says Pearson.
Garages can have carpet added, the garage door insulated, and even the space above the car can be used as clever storage, he says. “You can do some really cool stuff inside garages.”
Interiors and exteriors
Colour can really make a difference, says Resene marketing manager Karen Warman.
“Often the hardest thing about a sea of new-builds is that one house can look a lot like the next. So a good place to start is to add a little of your own personality, without going overboard,” she says.
“New homes are typically very neutral in colour and can be lacking personality inside. You don’t have to completely repaint, but add some colour or wallpaper features in areas like the living room, entrance and master bedroom.
Block NZ 2022 contestants Chloe and Ben. Pearson thinks the pair have made smart choices. Photo / Supplied
“New home walls are easy to paint over. Simply clean and then apply your new paint colour. Usually no priming or sealing is needed. Generally you only need two to three rolls of wallpaper for a feature area, or a couple of litres of paint.”
Warman recommends adding a painted splashback to upgrade the kitchen. “Painted splashbacks are made by painting onto the back of the glass. Once installed the paint is protected behind the glass. Make sure you use low iron glass as standard glass will make your colour look green.”
Pearson recommends upgrading the window coverings, which might be basic or even non-existent in a brand-new home. “Then things like floating shelves can add a wow factor,” he says. “You can actually make some cool statements without spending too much. “
Outdoor presentation is paramount when it comes to adding value to a new-build home, with Byron advising homeowners to look at getting their garden professionally landscaped or even swapping out pebbles for artificial grass or decking to makes the outdoor space more usable and Pearson recommending adding a raised vegetable garden.
A new lick of paint on your front door can make your property stand out from the crowd. Photo / Getty Images
Warman advises homeowners to consider making a statement externally with paint, if the covenants and body corporate allow this. “Choose a high gloss finish for front doors. The high gloss will help the colour pop and stand out more. A bold front door will also help guests find your house and entrance easily.”
Another way to make money is by buying in the first place, says EasyStreet mortgage adviser Gareth Veale. “Buying an end unit or unit with better outlook may be the same price off the plans but ends up being more desirable, even if it is the exact same plan as another within the complex,” he says.
Loan Market mortgage adviser Bruce Patten recommends young buyers of new-build homes pay down debt as fast as they can to build up equity. “Normally when young ones buy apartments they tend to have a little surplus income because they haven’t pushed themselves to the limit by buying a freestanding house,” he says.
