Home improvement doesn’t just make your house more comfortable for you, it also makes it worth a lot more when it goes on the market. There are many home upgrades to consider such as upgrading the kitchen or bathroom, adding an extension or simply repainting. With the right improvements, the increase in value can outweigh the cost of the upgrades and if the property is your main home, you won’t be paying capital gains tax on the increase in value.
Making the right improvements
Making improvements isn’t just about what you like, you also have to ensure that you’re making the house attractive to future buyers.
To maintain or renovate
Sometimes what is needed is not an upgrade but a repair. If your home is old or in a poor state of repair, what you should be thinking about is maintenance. Ensure that the plumbing and electrical system is in good condition and service all appliances that use gas. You can put in a new central heating system, a modern boiler and you can also see about improving your home’s energy efficiency. People investing in energy saving solutions may qualify for some grants.
Put yourself in the shoes of the Buyer
A buyer may not be interested in some of the improvements you make no matter how expensive or useful they are to you. This means that no matter how much money you pay for the upgrade, the value of your home will not go up when it’s time to sell. Neutral colours will also appeal to most buyers when it comes to new appliances, tiling and repainting. This such as the need to repaint, rewiring, buying a new boiler, draughts and leaks etc. will all serve as a basis for someone to ask for a discount on your asking price. It will cost you much less to do these things on your own.
There are limits
It’s important to talk to a local estate agent so they can tell you what can add value to your home and how much value will be added. For some properties, there is an upper limit above which the price cannot go. This could be due to the neighbourhood or transport links.
Paying for the Improvements
You can pay for the improvements to be done using your savings, from your income or by taking out a loan. If you’re currently paying a mortgage, you can borrow up to 85% of the value of your home. However, you should be careful before you use your home as a security when taking out loans since it could be repossessed if you can’t keep up with the mortgage repayments.
There are several ways of reducing costs when you are doing improvements. You can look for as many alternatives as possible to get the best quote. You can also seek out neighbours doing the same so you can get a bulk rate from your tradesperson. You can also do as much of the repairs as you can by yourself.