Overcapitalising: what it is and how to avoid it

As a home owner or property investor, you may have heard the term ‘overcapitalising’. But what exactly is it and why is it considered bad? While adding a new deck or kitchen can increase the value and enjoyment of your property, overcapitalising can end up costing you more than you planned. Here’s a closer look at what overcapitalisation is, why it’s bad, and how you can avoid it and still increase the value of your property. What is overcapitalising? Simply put, overcapitalisation is when the cost of a home improvement is more than the value it adds to your property. For example, if you buy a property for $500,000 and spend $100,000 on a new outdoor kitchen area with timber decking and fanc

How to modernise your kitchen on a budget

If you want to modernise your kitchen but you’re concerned about the cost, don’t be dismayed. There are many ways to get a new kitchen without destroying your bank balance. Downgrade to upgrade Saving money doesn’t mean you have to compromise on everything in your new kitchen. Select a few fittings or features that you want to spend a little more on, then budget in other areas. For example, if you have your heart set on a granite benchtop, perhaps you could have a tiled splashback instead of a glass one. By choosing one or two standout features, you can still achieve the ‘wow factor’ you’re looking for. Don’t move mountains You can save on electrical and plumbing contractors by working wit

Herron Todd White - Month in Review April

When we gaze across the landscape of available information related to real estate markets in our land of Oz, it generally falls within two camps – quantitative and qualitative. Now there’s a section of the brain that believes qualitative measures are the only way to go. It’s the rustic equivalent of a wizened old bloke whittling down a birch branch while rocking on a front porch recalling how the markets ran in his day – all experience and gut feel. At the other end of the cerebral scale are the lab coat encased quantitative neurons looking purely at the numbers and working through the machinations to form a reasonable hypothesis of what is about to occur in particular markets. In truth,

RBA Interest Rate Decision April 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The global economy has strengthened over the past year. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. The Chinese economy continues to grow solidly, with the authorities paying increased attention to the risks in the financial sector and the sustainability of growth. Globally, inflation remains low, although it has increased in some economies and further increases are expected given the tight labour markets. As conditions have improved in the global economy, a number of central banks have withdrawn some monetary stimulus and further steps in this dire

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