Home improvements that add value
Spring has sprung and it is this time of year that many of us start thinking about home improvements that add value to our homes. Before you decide to add a new garage, or go up into the loft consider how these ‘improvements’ will affect the value of your home. This is a pertinent question especially if you have plans to move in the short to mid-term future. Below we outline examples of home improvements that add value to your house.
According to research conducted by Which? The top three home improvements that add value to property are:
- Building an extension for another bedroom
- Building an extension for another reception room
- Adding a garage.
If you are dreaming of a brand new kitchen surprisingly it doesn’t always make a good investment, adding an average of only 4% to the value of your home. Creating an open plan kitchen diner would give you the same return, at considerably less cost.
According to Zopa, adding a conservatory could give you a healthy 108% return on your investment. Look at the figures in the table below; will the benefit you feel and the return on your investment justify the cost? An extension could be a great improvement if you are intending on staying in your property for some time, but not so beneficial if you are planning on moving in the short term.
Don’t be afraid if you have plans for more unusual home improvements. A garden office or cinema room could add up to 5% to value of your home, whilst a sauna or treehouse could add 1%.
Being creative with your space can add real value to your home, but don’t repeat the mistakes of the past. The biggest home improvement faux-pas of the last 50 years have been identified by The Barclays Mortgages Home Improvement Report 2015. Remember that avocado bathroom suite? 62% of people consider that a major property turn off. Woodchip wallpaper will have 60% of people running for the hills and stone cladding will stop 54% of people from looking any further.
If you have artex ceilings, flocked wall paper, pebble dashed exterior walls, strip lighting, carpets in bathrooms, linoleum or synthetic wood then you would do well to start your home improvements there. They each made the top 10 list of the worst home improvements in the Barclays report.
Remember home improvements do not guarantee a higher price for your property. Some properties have a ‘ceiling price’ that is determined by its location, plot size and transport links etc. If your motive for home improvements is solely to add value, then it is probably worth finding out whether your property has reached this limit before you invest in it further.
If you are looking at home improvements that add value or to enhance your current living situation with a view to moving at a later date, then evaluate the return on investment and the benefit you will receive from the proposed improvements. If these justify the expense then great! You can also be assured that these improvements will probably also make your property more saleable, so it’s a win-win situation.
