Good do-ups great way to bank a healthy profit

The analysis from free sales and valuation website homes.co.nz has found renovating an older home has more financial benefit than renovating a newer home. Photo / Michael Craig

New data has revealed the earning power of home renovations - with Mt Wellington topping the list of Auckland affordable suburbs for keen DIYers and refurbs adding $240,000 to values.

The analysis from free sales and valuation website homes.co.nz has found renovating an older home has more financial benefit than renovating a newer home, with certain suburbs standing out as great DIY start points.

Jeremy O'Hanlon from homes.co.nz said the company compared the price differences for homes considered to be in "good" condition by Auckland Council to those in other conditions.

It found the biggest value increase for renovated homes was with those built between 1900 and 1910.

These properties, likely to be historic villas, command a 67 per cent uplift when they are in "good" condition. "Although these renovated properties do show a greater price uplift, they are rarer with only 500 sales in 2016," O'Hanlon said.

"They also have a higher average price with $1.4m for a unrenovated property."

O'Hanlon said there was more opportunity in more affordable areas such as Mt Wellington.

Housing stock in the east Auckland suburb provided the best starting point for those keen on investing in home improvements, he said. Improvements made to modern properties saw a 46 per cent increase with the average sale price increasing from $530,000 to $770,000. More established properties in the area saw an increase of 31 per cent when renovated.

The average sale price for those properties increased from $800,000 for an unrenovated house to $1.05 million when renovated.

Mangere Bridge also provided plenty of do-up properties, with 15 of the sales in 2016 made up of unrenovated properties.

Unrenovated homes sold for an average price of $862,200.

Renovated homes sold for $150,000 more at just over $1m.

Historic properties, built before 1940, that have been renovated to a "good" condition command a 38 per cent price premium over properties where the walls and/or the roof require repairs.

"Perhaps the 47 per cent uplift of 1930s villas will help investors avoid bowling some of these iconic homes once the unitary plan kicks in," O'Hanlon said.