Monday, May 25, 2009
Category:
Personal Finance Tips
The short answer is yes and no, depending on what you do. Taste is subjective.
Painting all the walls black and removing a bedroom to have a second living room is unlikely to be appealing for most buyers! On the flipside, certain home improvements may cost more than what they would add to the property. Whereas other relatively cheap home improvements could add considerable value.
The best home improvements are those that future homebuyers will want. The worst home improvements are those that only the current homeowners want.
Make these improvements
There are a few things that you can do to your property that add value over the long-term.
- Repainting: nearly all the research that had been done by banks confirms this is the single most effective home improvement project.
- Decorating: you can do this cheaply and it shouldn’t even take long. This includes things such as re-plastering bumpy walls or ceilings and adding new carpets or flooring.
- Central heating: this is especially effective if the property does not have central heating installed already.
- Second bathroom: consider this even if you can only build half a bathroom.
- Adding an extra room: this could be a conservatory or a study or even a bedroom. Extra space is nearly always a good addition to any property.
- Loft conversion: you could convert the space between the roof and the ceiling into a study or a second bedroom.
- Tidy up the Garden: a well cared for garden is appealing to buyers.
Reconsider these improvements
While these extensions may not push up the value of your property, they do offer homeowners other less tangible benefits. Feel free to alter your property but be aware that future buyers may not need these extras or in fact, want previous features removed. Some alterations you should shy away from include:
- Removing period features such as cornicing, fireplaces and sash windows.
- Cheap laminate flooring
- Woodchip wallpaper. If you have it, get rid of it.
- Patterned carpets. Big in the 70s and in Las Vegas casinos but not in a buyer’s dream home.
- Paved over gardens.
Improvements that have little or no affect on the value
A new kitchen could go either way – good or bad. The best kitchens are ones which make best use of space, have all the desirable features and are neutral. If you’re pressed for space, a washer/dryer could be stored elsewhere. Or if you’re really lucky, white goods such as these are best stored in the utility area.
What to consider before renovating
The very first thing you should consider is the area in which the property is located. Does the area justify high-end renovations? Scale down a bit if you stay in a more modest area. Stay true to the property’s character and stay within budget. Do not add something that is too high-tech such as wiring the whole house with speakers and an intercom system. In high end new builds, features such as these are used as selling tools but in reality, any value add is minimal. Above all, do your research.
