Home improvements that add to your property’s value can be a worthwhile way of investing.
With house prices edging downwards, more and more homeowners are taking the view that renovating or improving could be a better option than selling up in the current market.
According to the Halifax, house prices dropped by 0.6 per cent in the first quarter of 2011, compared with the previous quarter, while this year as a whole, it expects prices to decrease by 2 per cent.
“With the market depressed and buyers seeking a bargain, now is not the time to sell,” says Sylvia Marshall property expert and creator of DIY website, www.bubsydogdiy.com. “Why not just improve what you have?”
The hope is that by doing so, you can boost the capital value of your property and improve your chances of being able to sell at the right price a little further down the line.
Do your research
If you are thinking about making some changes, you need to do your research, as unsympathetic extensions and building work can devalue a property or make it more difficult to sell.
“Caution is needed if you don’t want to throw money down the drain,” warns Marshall.
Sarah Beeny, property expert and founder of buying and selling site Tepilo agrees that house renovations can be a lucrative exercise when done properly and to a budget.
“But hasty decisions on extensions, furnishings, fixtures or fittings, will just result in financial turmoil,” she says.
Create extra space
As a general rule, creating extra space is a winner.
“If you have some spare cash, you can create that extra room by going up, down or around,” says Marshall. “Converting the loft will probably cost around £25,000, but could add as much as £100,000 in value.”
The basement could also be a potential money-spinner.
“At around £300 per square foot to develop, this may be worth upwards of £600 per square foot in urban areas, so it’s worth doing the sums,” says Marshall.
“Equally, for a quick return, look at outbuildings and potentially integrating the garage as extra space.”
Extend the kitchen
With kitchens seen as the hub of the home, you can add value by creating a multi-functional room, according to Hugo Tugman, founder of Architect Your Home.
“A single storey kitchen extension should cost in the region of £20,000 to £50,000, depending on the area, size, spec and complexity of the project,” he says.
“A simple rule of thumb suggests a really inviting kitchen extension can add between 12 to 18 per cent to the value of a small house.”
Know the ceiling price
Nonetheless, while additional bedrooms, bathrooms and en-suites can all be a great way of adding value to your place, it’s important not to out-price your home.
“If you have a home worth £200,000 and the ceiling in your area is £215,000, adding a £30,000 bathroom is nice, but won’t make you money,” says Marshall. “In these stringent times, focus on changes that can be done with more effort than outlay.”
This could be something as simple as having a clear-out.
“The impression of space is everything, so de-clutter, spring clean and rearrange the layout,” says Marshall. “You could be surprised at the difference this makes.”
Cosmetic improvements
Breathe new life into kitchens and bathrooms by adding a new cost of paint in neutral colours.
This should set you back less than £1,000 but can add more than double this to the value of your property. Also, invest in industrial tile cleaner and spend time re-grouting.
Spruce up the front entrance by repainting the tired old front door, fix any dripping gutters, mow the lawns and make sure pathways and decking are clear of weeds.
Energy efficient improvements
With energy bills going through the roof, buyers are now far more interested in energy-saving measures, with the Royal Institution of Chartered Surveyors (Rics) suggesting you can add up to 4 per cent by installing double-glazing, and 5 per cent by having central heating fitted.
Other “green” measures include wall, floor and roof insulation and an energy-efficient boiler.
Things to avoid at all cost
Specific features such as a pools and gyms are financial losers, according to Tugman, while poor quality extensions and out-of-character additions could also lose your money when you come to sell.
Finally, given that your home is likely to be your most valuable asset, don’t jeopardise it by trying to side-step good design, or with dodgy DIY or cowboy builders who will do a shoddy job.
Invest in good design and quality workmanship, and you will reap the benefits when you come to sell.
