New Zealanders love renovating. We devour reality television shows (Grand Designs, anyone?) and magazine spreads of lush interiors, and we make surplus trips to DIY shopping barns. However, when it comes to renovating our own property it might be a good idea to avoid overcapitalising.
Whether you're renovating an investment property or getting your own house ready for market, making improvements that exceed the value of your property is referred to as overcapitalisation - and it’s a rookie error that is best avoided.
Armed with the right research, you could make improvements to your property that can both maximise rental return as well as increase your property’s resale value. Budgeting is one way to ensure you don't spend more than what your property is worth.