WHEN it comes to our homes, we are always looking for improvements to add value to our properties.
However, we sometimes overlook how much these changes could cost – or worse, if they might leave a dent in the asking price of our home.
If you’re looking to improve, as opposed to moving, you may be focused on boosting your quality of life, but you also need to consider whether your plans will actually add ££s to your property.
We’ve enlisted the help of property expert, Ettan Bazil, founder and chief executive of Help me Fix, to help talk us through which so-called ‘improvements’ are a no-no.
“Mortgage rates are increasing rapidly,” said Ettan.
“With this in mind, you may find it makes more financial sense to invest in your existing home and add value, rather than overstretch when borrowing to fund a larger purchase.
“While most improvements will hike up the asking price of homes, carry out the wrong renovations, and you could find yourself out of pocket – and maybe even having reduced the value of your property.”
Removing the bath
Tearing the tub out of a family bathroom may feel like a no-brainer if you see it as something which takes up space unnecessarily. But for some, including many families, a bath is non-negotiable.
According to Help me Fix, removing the bath from a family bathroom could cost an estimated £2,765, but could knock £5,918 off the average UK home priced at £295,903.
This would mean overall, you’d end up losing out to the tune of £8,683.
“Think carefully before replacing a bath with a shower,” said Ettan.
“This could knock thousands of pounds from the value of your house.”
Landscaping the garden
Ploughing some money into your green space can seem like a good idea, but Ettan reckons it could set you back £3,750, while only adding £3,551 to the value of your home. This would leave you £199 in the red.
“Making changes can make your outside area a lot more enjoyable,” Ettan said.
“But if you’re looking to make some cash, you’re better off channelling your money and efforts elsewhere.”
But these panels do not come cheap, requiring an initial outlay of £5,875. They would also only add £1,480 to the value of a £295,903 home, according to Help me Fix.
“You could find yourself £4,395 out of pocket,” said Ettan.
“This isn’t a great return on your investment.”
If you’re feeling flush and love the flicks, you might like the idea of being able to enjoy the experience of the cinema without actually having to go anywhere.
But bringing the big screen into your home doesn’t come cheap, with the estimated potential cost standing at a hefty £15,000, according to Help me Fix.
“A home cinema could be great for entertaining friends and family,” said Ettan.
“But it will only add £2,663 to the value of the average UK property. You’ll end up losing out to the tune of £12,337.”
How much could you stand to lose?
If you carried out all four of these renovations, it would potentially set you back £27,390 in total.
But it would only add £1,775 to your home’s value.
Based on the ‘potential cost’ minus the ‘added value’ you’d end up £25,615 out of pocket.
Boost your home’s value by adding a bedroom
So what should you do to boost your home’s value?
“Adding more space to your property with an extra bedroom is probably the most worthwhile home improvement you can make,” said Ettan.
“This will not only improve your quality of life but will also add value when it comes to selling.
“It’s a feature which appeals to everyone, at all levels of the property ladder.”
The addition of an extra bedroom could add an extra £44,385 to the current average UK house price of £295,903, according to Help me Fix.
But adding that all-important extra room does not come cheap at £21,760.
That said, even once you’ve taken the cost of implementing this home improvement into account, the addition of an extra room can still help boost the value of your home by £22,625.
“It can be one of the most expensive home improvements you can make,” said Ettan.
“But you’ll generally always see a return on your investment.”