Wednesday, June 6, 2007
Category:
Personal Finance Tips
New research conducted by GE Money Home Lending has shown the differing opinions between homeowners and estate agents when it comes to profitable home improvements.
Many homeowners wrongly believe that new kitchens and bathrooms are the most valuable property improvements whereas estate agents opinions differ. They believe that loft conversions and extension can offer over £28,000 more value. In London a loft conversion can add a staggering £45,000 to an average property.
The least profitable home improvement projects according to estate agents include new flooring and garden decking.
Giacomo Gigantiello, Unsecured Loans Sales Leader, GE Money Home Lending explains “Homeowners planning improvements to their homes this summer to specifically increase the value of their property could be missing out on the most valuable additions. At a time of year when many are planning to improve the value and desirability of their homes, it is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home. In many cases homeowners automatically opt for a new kitchen or bathroom. Whilst these are valuable additions to any home, the findings from this research show that it is also important to consider improvements that will ultimately increase a property’s living area.”
According to GE Money Home Lending, homeowners that are keen to increase the value of their property often undertake the wrong home improvements. The top three home improvements that homeowners opted for combined would not increase the value of a property by as much as a loft conversion, the top choice made by estate agents.
On average a new kitchen and bathroom, the top two choices of home improvement for homeowners, would add only £13,400 to a property whereas a loft conversion and room extension could improve the value of a home by almost £42,000. According to research many people think simply redecorating rooms adds more value than a loft, an extension or a conservatory.
The profitability of home improvements differs considerably depending on region and style of property according to the research carried out by GE Money Home Lending. For more metropolitan and densely populated areas like London and the South East, loft conversions on average offer the best potential increase to a property’s value, adding as much as £44,500. In Yorkshire, conservatories which back on to open spaces benefit properties most, adding almost £25,000. On the other hand, estate agents believe that the least profitable improvements include outdoor decking, but this too depends on the region. In areas such as London where homeowners need to make the most of any outdoor space, decking can add on average £2,350, whereas in the countryside, like the South West, a decked or terraced area adds only £470.
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Before carrying out home improvements, homeowners need to take into account the area where they are living and the type of property they are living in. Those considering large projects such as loft conversions and extensions could consider a
home improvement loan, one of the many options available for homeowners wanting to carry out home improvements. Using a secured loan to carry out home improvements could also potentially add considerable value to homeowners properties. A secured loan could allow for professional contractors to come in ensuring that the job is carried out to the highest standard. Whether homeowners are looking to add a large amount of value to their property or would just like to improve the appearance through a lick of paint, a home improvement loan could be the answer. Made payable over a term to suit the borrower, a home improvement loan can be paid over a term of 5 to 25 years.
