Improvements that increase the value of your home
Almost immediately after moving into your new home, you will begin entertaining ideas for renovations. Perhaps adding another room, redoing the kitchen or installing a swimming pool.
While it is certainly a perk of home ownership to remodel and renovate until the house fits your lifestyle like a glove, there are some considerations to take into account.
Home improvements and renovations should, firstly, improve your enjoyment of your home, but secondly and importantly, increase the resale value of your home. Some improvements increase your risk of over-capitalising, or investing more in home improvements than you are likely to get back should you sell.
Over-capitalisation means that homeowners improve their property so extensively, that the cost of renovations, added to the selling price of the house, exceeds the current market value of the property.
But there are some improvements that will increase the value of your home. These include fixing the things that will lower the resale value of the home, such as cracked walls, leaking roofs and peeling paint.
Once the basics are in shape, you can turn your attention to the kitchen and bathroom. You are almost certain to recover the costs of any improvements in these areas when you sell your house.
When renovating your bathroom, don't be caught in the mindset that expensive taps or showerheads will add huge value to your home. Bathroom fashions change quickly and it may be more prudent to go for a classic, practical style. What is of utmost importance is quality. Quality fittings will hold its value and its appeal for longer and will add more value.
The kitchen is one of the most used rooms in a house and as such shows the wear and tear of prolonged use sooner than the other rooms. If you are planning on selling in the near future, the cost of a new modern kitchen is likely to be recouped in the selling price. Neutral colours are more popular and practical, while ample cupboards and plenty of counter top space are important. A fresh coat of paint, modern tiles, new cupboard doors, modern light fixtures and a new quality stove will also add value.
Get the basics right
Always use quality contractors to do the renovations and improvements and ensure that you get warranties and guarantees on the work done.
Get the basics right, then improve your kitchen and bathrooms with a focus on quality, not extravagance. This way, you can increase the value of your home without running the risk of over-capitalising.