Buying a home is probably the biggest investment most of us will ever make, therefore as well as making it as comfortable as possible for ourselves whilst living in our home, we want to get the maximum return on our investment too. Location is a key element. You can change the property, but not the location. The more desirable the location, generally the higher the price you will have to pay.However the returns should pay dividends when you eventually sell. If you don’t have the necessary funds for the best location, you may decide to buy a house in a popular road, but at the ‘dodgy end’ of the same road, or in an area adjacent to the ‘prefferred’ area in the hope that the area will eventually become more desirable. This can work, but should be viewed as a longer term return on your capital investment. You may have to wait a long time.
Advice The thrill of owning your own home can carry you away on a DIY spree, or with builders quotes for major improvements. Do not be too hasty to knock down walls, live in the house or flat for a while, find out what works and doesn’t work for you and your lifestyle. Long term homes evolve gradually. For shorter term homes used as a step ladder in the property market, think about who your target market will be when you come to sell. Who will want to live in your property, what will they need and want. Then plan any updating and renovations on this basis. immaterial of your goals, do your sums first, do not over do or over develop as this can have a derogatory effect and end up costing you. Recently I have viewed properties which are in need of renovation. The asking price did not particularly make it a bargain to instantly grab. After planning and costing the work necessary to bring the property up to standard, I asked the selling agent what selling price could realistically be achieved. The agent suggested a vague figure. “Oh” I said. “By the time I had bought the property, spent X amount on it, not mentioning the blood, sweat and tears) the house will be worth maybe a little more, or even less than it had actually cost me”. The agent replied that I should look at it as a long term investment. Even so, you at least want to break even, better still make some money for all your efforts, otherwise you might as well go and buy something already completed and lovely, and save yourself all the grief and bother. The same can be said when over developing a property on very expensive and unnecessary improvements. Use the existing values of houses in the same vicinity as a guide for the ceiling price which could realistically be achieved, and don’t forget to take market fluctuations into account too.
Kitchen – Will add up 4-5 % value. A well planned and designed kitchen help sell a property. It will also give you pleasure whilst working in it. Don’t install a very expensive kitchen in a modest house, your gain will not cover the cost of the kitchen. Likewise a very cheap kitchen could de -value an up market home. Think about which style of kitchen is going to suit your target market. You may love bright orange, but will they?
Bathroom -Will add will add up 3% to the value. Keep it simple by adding a white suite, a shower screen (if over the bath) instead of a curtain. a chrome heated towel rail, nice taps and shower heads.
Conservatories or Orangeries – Will add up 7% to the value. Create extra square footage by adding a conservatory or orangery. Always build it as big as you can, but do not compromise your garden. Place furniture in it for it’s intended use i.e. dining or lounging area. Make the space flow from the existing house and not look like an added ‘bolt on’ afterthought.
Loft Conversions – Will add up to 12.5 % to the value Use a ‘dead’ space for living space and extra square footage. However be careful not to compromise the existing accommodation to fit in the stairs i.e. by encroaching on small bedrooms or landings. Employ a specialist company to plan and execute the work. Building Regulations will be required.
Converted Cellars and Basements Unless your home is worth £300 per square foot, which is the cost of doing a basement, you will not get a return on your investment, only add extra living space. Though expensive, this is a very popular choice of adding extra living space for kitchens or family rooms. A specialist basement conversion company should be hired to carry out the works.
Garages – Not many houses actually use the garage for their car. It is often used for storing stuff. Turn it into living space. The cost will be approximately £10,000. To calculate the added value simply multiply the square footage gained by the local price per square foot of property.
Less is more, it is better to do less very well with good quality fixtures, fittings and finish, than more done badly.