Home Improvements

If you are a homeowner and have decided not to move out but instead are looking for ways to improve your existing home, if appropriate, one solution is to consider adding an extension to the property. This will provide additional space or valuable amenities that can also significantly improve the value of your property.

By investing in an extension, you can also get more out of your property without subjecting yourself to any of the headaches associated with buying a new home. But not all renovation projects add as much value to your home as you might think.

VALUE-ADDING RENOVATION PROJECTS

Research identified some common value-adding renovation projects that homeowners could undertake and how much each project is expected to add to today’s house price once costs have been taken into consideration. The research findings identified that adding a property extension adds the most value, increasing the market price of the average home by 15%[1].

However, the average cost of adding an extension is estimated at £40,000. Once this cost is deducted from the £44,149 it’s thought to add to the value of your home, it leaves just £4,149 in actual added value.

HOMEOWNERS MAXIMISING NET PROFITS

Another option for homeowners who want to maximise their net profits is a garage conversion, which will cost around £13,750 but will add 10% (£29,433) in value. This leaves an actual increase in value of £15,683. A garden office is another alternative option with a cost of around £9,500 and a 7.5% (£22,075) increase in value, which leaves an actual added value of £12,575.

TURN-OFFS FOR FUTURE PROSPECTIVE BUYERS

However, some renovation projects may not be worth it if you’re looking for added value. The research identified typical landscaping costs only £3,750 but only adds 1.4% (£4,121), leaving you with an actual added value of just £371. A roof replacement results in an actual added value of £1,124, while a new boiler results in a net boost of £1,592.

Homeowners should still address these final projects if necessary because such issues can be big turn-offs for future prospective buyers when viewing your home. Home renovations aren’t always about adding market value to a property before selling; they’re often about adding enjoyment to living in our homes. There is no right or wrong project to get stuck into.

MAXIMISE YOUR PROPERTY’S VALUE POTENTIAL

By remortgaging your property, if appropriate you could raise money for home improvement projects while still paying off your existing mortgage. This can be an effective method of financing renovations or extensions, as it allows you to benefit from the increased value that these improvements bring to your property.

If you are specifically looking to maximise your property’s value potential make sure you do your research before committing. A good place to start is by looking at similar properties in your local area to get an understanding of current valuations.

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