If you are looking to sell or refinance your home, it makes obvious financial sense to add value to it as far as possible.
If you can spend say £5,000 for a new kitchen which adds £10,000 to the value of your home, why would you not want to do that?
Remember that the benefits of adding value do not just apply to your home.
If you are a landlord or an investor and own an investment property, such as a buy to let unit, it makes even more sense to add as much value as you can during your ownership of the property…it is after all an investment.
There are countless ways to increase the value of a property. In this blog we look at 8 of the most common methods.
1. Build an extension
Adding more space to your home by building an extension is one of the more cost-effective ways to add value. Depending on the type and location of the property, an extension could easily add 10-20% to its value.
An extension which extends an existing room – such as a kitchen – is good; but an extension which creates a completely new room is probably even better.
2. Split the property into two
Splitting a property into two self contained units can be a major, expensive and time consuming undertaking – but it can add significant value.
This option may be available to you if, for instance, you own a large Victorian house and other houses in the road have been converted into two units.
If you live in the property, carrying out the split while in occupation will clearly prove a challenge and involve a certain amount of sacrifice and inconvenience.
You will almost certainly need planning permission and building regulations approval for the conversion but, if successful, you will be seriously quids in.
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3. Convert a cellar into living space
Converting a cellar can add significant value on account of the addition of useable floor space.
Because of the challenges and issues involved when converting a cellar and in particular the need to make it fully watertight, it is best practice to engage an experienced contractor to do the works and it is desirable for the works to come with an insurance-backed guarantee.
Depending on the size of the cellar and the number of rooms you manage to add, a cellar conversion can easily push up the value of your home by 10-20%.
4. Convert the garage
Especially if you live in an area of good public transport, consider converting your garage to more valuable living space.
5. Do a loft conversion
A loft conversion can be a relatively inexpensive way to add floor space. It can however be a tricky operation and it is best practice to use an experienced contractor who comes highly recommended.
Find out how to quickly raise a house deposit or down payment HERE.
6. Add a conservatory
Building a conservatory can be one of the easiest ways to add extra value to your home.
A conservatory is normally considered “permitted development” (without the need for a planning application) but in certain cases – such as where walls are taken down – building regulations approval may be needed.
A good quality conservatory can add 5-10% to the value of your home.
7. Upgrade the bathroom
A new bathroom will not usually add substantial value to your home – probably less than 5% in most cases.
However, it may be an important factor for some buyers and could result in a quicker sale.
8. Add a new kitchen
A new kitchen can both add value and help to sell your home. An all singing all dancing kitchen is great, but it is important to avoid spending more on the kitchen than the value it adds.
It is commonly believed that a good quality, well designed kitchen can add 3-10% to the value of a home.
If your property is for investment purposes, it is prudent not to spend more on the kitchen than is justified by your rental returns.
Have you added value to a property? What methods did you use? How successful were your efforts? Are you willing to share your experiences? Please leave your comments below.
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Rebel Property Coach
My website is: www.rebelpropertycoach.com
Categories: 03 Grow