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Improvement Guide
DIY
profits
Homeowners
can no longer rely on rising property prices to add value
to their homes. Anthony Bailey explains how home improvements
can achieve this whilst making your house more saleable in
the future
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House-sellers may be losing out on as much as £3
billion. “This is money which could be gained
if sellers carried out some basic DIY, to ensure shrewd
homebuyers aren’t turned off by their homes”
says Andy Gray of the Woolwich. The UK’s fourth
largest mortgage lender carried out a survey back in
January to discover how the condition of a property
affects potential buyers.
Sometimes a home may just need a lick of paint.The
single biggest turn-off for homebuyers is nicotine-stained
paintwork and the smell of stale cigarette smoke.
Six
out of ten people surveyed said this would make them
offer up to 10 per cent less than the asking price.
Sometimes a bit of elbow grease is all that’s
required - animal smells and dirty fridges and ovens
are turn-offs. But you may have to consider a bit of
serious spending, too.
- Stone
cladding,
- avocado
bathroom suites,
- swirly
seventies-style carpets
- unstylish
fireplaces
can
all encourage buyers to reduce down an offer price.
It’s
a message many homeowners have taken to heart.
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DIY
disaster or profit?
Specific improvement in order of value likely to be added
to your property
1. Installing central heating
2. Bringing original features
back to properties
3. Adding a garage
4. Converting the loft
5. Adding a conservatory
6. Building an extension
7. Making your home more secure
8. Putting in a new kitchen
9. Putting in a new bathroom
10. Redecorating |
Sainsbury’s Bank reckons that, over the last six months,
- 6.1
million people were planning to paint and decorate
- 2.7
million were aiming to fit a new bathroom
- 1.6
million were hoping to fit a new kitchen
- 1.26
million were planning an extension.
In addition,
720,000 wanted to build a new conservatory; 645,000 were going
to spend money on new windows or double-glazing; 420,000 needed
a new roof; and 310,000 were planning a loft conversion.
Those of you aiming to carry out these home improvements may
have the edge over the less house-proud when it comes to selling.
Money well spent
But what does it all cost and what DIY spending
is money well spent? “There are no guarantees, but making
the right changes can improve the saleability of your home.
It’s much safer to make improvements for your own satisfaction,
not because you think they’ll add to the value of your
home. You’ll enjoy your home more and any financial
gain is just an added bonus,” says James Duffell of
The One Account.
Building
a garage or off-road parking bay is the top investment to
increase your property’s worth, according to valuation
experts.
A garage
costs between £15,000 and £40,000 and you are
likely to recoup all of that money when you sell, perhaps
even more than you spend in London.
By comparison,
a garden makeover could cost between £3,000 and £6,000
and you may recoup just 10 per cent of the money. That’s
a poor investment return but could mean you enjoy your summer
much more.
Double-glazing costs between £4,000 and £15,000,
and central heating from £3,000 to £6,000. They
recoup 25 per cent.
A conservatory
costs £5,000 to £25,000 and recoups 40 per cent.
Electrical
wiring or under-floor heating can cost between £2,000
to £4,000,
A kitchen
refit from £2,000. These
can all recoup 50 per cent.
Rear or
side extensions cost £7,000 to £20,000 and recoup
60 per cent.
New bathrooms
cost £7,000 to £20,000,
loft conversions
£15,000 to £30,000. Both can recoup 75 per cent.
And even if you don’t get back all your investment in
the sale price, home improvements can be worthwhile by making
your property easier to sell in a cooler housing market where
the buyer calls the shots.
Room for improvement
But the Halifax home improvements survey shows only
one-in-ten homeowners in England and Wales have made improvements
with the sole intention of adding value to their property.
Thirty-one per cent wanted to improve their standard of living
and 35 per cent wanted to improve the look or design of their
home.
“It is heartening to see that adding value to a home
is not the sole motivator for undertaking improvements,”
says Halifax chief valuer Patrick Sawdon. “However,
it is important to remember the resaleability factor when
considering any work to be undertaken on your home. Ensure
that any alterations are in sympathy with the surroundings.”
He warns homeowners not to go overboard on the specification.
“If you carry out a £25,000 kitchen improvement
on a £100,000 house, then you are not going to get your
money back. It is all about keeping things in proportion.”
You must make sure you end up with a professional job, get
planning permission if necessary, the freeholder’s consent
if you lease the property and check the building regulations.
“When the time comes to sell your property, nothing
acts as more of a deterrent to a potential buyer than poor
workmanship or cutting corners on the necessary legal consents.”
Bear in mind that some improvements actually turn off potential
buyers, including external rendering or cladding, a swimming
pool, paving over the front garden, PVC fascias, timber effect
laminated flooring and fitted bedroom furniture. There are
no magic formulae to increasing the value of your home. Consider
getting professional advice from surveyors or estate agents
before carrying out home improvements.
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