My Finances offer a comprehensive and thorough resource that focuses on current UK-centric personal finance services. Our services as an online portal proudly attempts to offer advice in the best ways to reap the financial rewards of owning your own home. As an asset, homeowners are in a far stronger position than renters to negotiate further credit, loans and so forth, whether in the form of equity release or using assets as a guarantee against personal/business loans.
There are many extravagant ways to increase the value of your home, however, there is sometimes an understandably bittersweet reluctance to invest in high cost alterations without knowing that there is some guarantee of it paying off when the time is right to sell up and move on. From recent research, it appears that a swimming pool won’t really add the same value to a property as a loft conversion. In a recent data collection by GE money, the average cost of a loft conversion is around £20,000 and will add an average of £40,000 to a home’s value.
Due to wage stagnation and rising unemployment, the housing market looks set to rise more slowly over the next few years. Rather relying on the market rise of years gone by, experts are now advising homeowners to take matters into their own hands – adding value to their existing homes rather than taking for granted any expected profit.
‘Location, Location, Location’ presenter, Phil Spencer, recently shared his tips in the Telegraph, citing twenty tried and tested ideas to help you increase your property value. Ranging from simple, less costly ideas to more lucrative investments in home renovations, the advice is welcome in an increasingly unpredictable housing market. The television property expert advises to enhance a home’s original character – getting rid of dissonant or dated decor. Simple but stunningly effective changes such as opting for polished wooden floors instead of laminate, smoothing over textured ceilings replacing with decorative moldings can make a home far more appealing for future sale. For larger projects, loft conversions and conservatories are a safe bet, while in an urban area where parking is scarce, paving over the front garden can add a huge £50,000 to your property value.
The Bigger Picture
With any investment made to your home with the intention to increase value, it is worth doing some research. If your sole purpose of your renovation is to increase the sale value of your home, it is important to keep a few things in mind.
In terms of the general upheavals an extension brings, try to consider the implications of this stress on the whole family, work, life and home living areas that may last from a few weeks to months. Try to find out a realistic timescale and allow for the fact that there may be delays.
The second factor lies with the financial outlay versus any reimbursement further down the line. Research the best, most cost effective and least disruptive ways to add value, as some improvements can be less universally desirable to buyers than others. A home gym or a swimming pool, for example, is a luxury rather than a necessity, and a spare bedroom, larger kitchen or extra bathroom for a prospective growing family will always add more value to a home.
Lastly, try and keep the bigger picture – remember to keep perspective. The end game – adding value to your home – is to help your family’s future. In the midst of home upheaval, this can be easier said than done. Try to remember to make time to do fun, family-oriented activities, or try and book a relaxing spa day to unwind.