Friday, May 22, 2009
Category:
Personal Finance Tips
In one of our previous posts we asked whether home improvements could add value. The answer was a mix of yes and no. Homeowners should make improvements that future home buyers would appreciate. Homeowners should not make any drastic alterations to their properties which only have a market appeal of one (you).
What are value-adding alterations?
Such alterations could be anything that ups your chances of selling the property at a higher price relative to the amount you have had to invest.
Do it when you have spare cash available, or when you can get a home improvement loan at a good rate.
Consider the area in which the property is located. Can you get away with high-end renovations? Stay away from anything that others could consider to be over the top, ostentatious (think Jacuzzi in the front garden) especially if you stay in a more modest area. Stay true to the property’s character and stay within budget.
Do these improvements because they’ll bring more enjoyment to you and your family. Do not expect to double the value of your property after installing a high-tech kitchen.
Value adding improvements
Most of the banks' research pundits cite repainting and decorating as the improvements that have the biggest value-adding potential. It’s also the cheapest improvement you can make. According the GE money, a good DIY project could add as much as £22,300 to the value of your home.
Repainting: The Halifax bank confirms this as being one of the most effective home improvement projects.
Decorating: This can be very cheap. Everything from storage solutions to covering up exposed cupboards or re-plastering a bumpy wall. Whatever you do, do not over spend in this area and keep it neutral.
Central heating: Not the most inspiring or visible of the home improvements, but it can add up to 13% to the value of your house, according to Nationwide.
Second bathroom: Consider this even if it’s only a shower room. En suites and wet rooms are increasingly popular although wet rooms can be expensive. En-suite bathrooms are well worth the extra money. Just ensure the finishes and materials are of a similar standard to those used in the main bathroom(s).
Adding an extra room: This could be a conservatory or a study. Extra space is nearly always good.
Loft conversion: You could convert the space between the roof and the ceiling into a study or a second bedroom. This was the improvement estimated as adding the most value to a home.
Parking space: Some report that adding a garage could up the value of your home by around 11%. Off street parking is very appealing to buyers, so long as you don’t have top pave over the whole garden to make it happen. Bear in mind that the cost of a garage or driveway could cost £8 upwards.
New kitchen: Is your kitchen looking tired and dated and without the mod cons that so many of us have come to expect? A kitchen is said to be the heart of the home, so one that appeals to buyers and is accommodates their needs (such as feeding a family) is well worth the investment.
