ers receive a great deal of attention at the
current time due to the increasing difficulty of making that
first step on the property ladder. It is rarely documented
however of the difficulties facing homeowners looking to move
up the property ladder which is too becoming increasingly
difficult.
Recent research shows that the average upscale from a two to a
three bedroom property now stands at =A327,100. Those looking to
upscale from a three to a four bedroom house face the biggest
hike in price at =A364,032.
As a result of these differences in price, coupled with the
fees involved in moving home, more and more people are looking
to use homeowner loans to improve & extend their current home
to take the effect of upsizing.
When buying a property, many property developers will look at
the potential to improve, modify and extend in order to
increase the value. This is also a technique now used by many
buyers looking at the potential for home improvement.
It can be difficult enough to buy property, with many
considerations that must be taken into account. There are many
issues that can reduce property value let alone increase it;
however the type of property you buy can dictate your ability
to improve it or even make any additions at all.
The type of property that best suits improvement will depend on
the nature of work you would like to perform. For example, if
you are planning to convert a loft in an extra room then it is
important that there is enough room to stand up in.
Sometimes the easiest and cheapest way to increase your home’s
value is to invest in an improving, up and coming area using a
homeowner loan. Signs that an area’s property market is set to
improve can be relatively easy to find. These signs may include
looking at particular areas or streets that are already popular
with buyers. It is often the case that as particular streets or
areas increase in value, buyers are priced out of their
preferred location, so move as near to it as they can afford.
The important thing to remember is that there is no guarantee
that any improvements made on your property will result in an
increase in value. Buyers in different locations will be after
different things. It is an important consideration to ensure
that you are offering potential buyers what they really want.
For example a conservatory may be appealing to some but not to
others
A good yardstick is often to consult the local estate agents
who much a property would be worth subject to improvements
being carried out, such as a new kitchen or a conservatory.
Often it’s the smaller, cheaper improvements that can generally
offer higher returns than the more expensive ones. The larger
and more expensive jobs such as converting your loft or
basement may seem appealing to buyers, however they are often
unwilling to pay a premium that meets the expense and effort of
carrying it out.
The cost of any home improvement and the likely return will
vary hugely on the type of property and the area that it’s
located. Very few developments come in under budget with the
majority coming in over budget. Quote received from builders
can often be on the optimistic side. It is therefore prudent to
over budget for works
Below is a rough guide of the costs versus the benefits:
Loft conversions:
Cost: =A315,000 to =A335,000
Potential value increase: =A320,000
Difference: – =A35,000
A loft conversion must be done properly in order to increase
the value of your home. A very important consideration is that
it cannot be classed as a loft conversion unless it meets
specific building & planning regulations. Your local council
will be able to give advice on what those rules are.
Basement conversion:
Cost: =A3100,000
Potential value increase: =A320,000 to =A325,000
Difference: – =A377,500
A basement conversion is among the most expensive of home
improvements. Recouping the initial outlay when selling the
property is very difficult let alone making a profit. In some
case it can however be very beneficial when selling the
property if used as an extra bedroom.
Extension:
Cost: =A330,000 to =A350,000
Potential value increase: =A320,000 to =A325,000
Difference: – =A317,500
An extension is fast becoming a popular alternative to moving
home in order to upsize. You will usually have to sacrifice
garden space which can of course have a negative impact on your
home’s value. Before commencing with any planned work it is
important to consult your local council as there may be
restrictions on the height and proximity to boundary lines of
any addition.
Off-Road Parking:
Cost: =A31,000
Potential value increase: =A35,000
Difference: + =A34,000
Again, this work requires consultation with the local authority
as the job may involve altering the height of the curb. This can
prove to be one of the cheapest and most effective improvements
that can be carried out.
Conservatory:
Cost: =A310,000 to =A315,000
Potential value increase: =A312,000 to =A319,000
Difference: =A33,000
Conservatories may not seem quite as attractive in today’s
market as they once would have done to the potential buyer.
Adding a conservatory is an expensive exercise and would
perhaps be best considered for personal use rather than as a
tool to increase the value of the property.
About The Author: Chris Cooper is a homeowner loans expert for
http://www.any-loans.co.uk – He enjoys writing on all areas of
personal finance.
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