A good renovation will increase value of home exponentially
the residential property market still underpriced in relation to 2007/early
2008 values and with recovery in the property sector taking place only slowly,
now is a good time to buy an older home and renovate, says Graham Leslie,
MD of Greeff Properties.
Some of Greeffs most successful property deals in the last two to three years, says Leslie, have been those where the buyer has added significantly to the value of the home by upgrading it himself. A much quoted principle here is that every R1 spent on a good renovation can, and often does, add R2 to R3 to the sale price.
Those who buy expensive homes needing no repairs or improvements will often find that their capital appreciation rate is slower than that of a less expensive but tastefully renovated home, says Leslie.
Buyers looking to make substantial gains on their homes should, he adds, also try to buy into properties where subdivision is or may be allowed as, for example, certain people did in Upper Claremont prior to the townhouse boom in the area.
Really enthusiastic renovators, said Leslie, have on occasions rented out their existing homes and lived in cheaper accommodation for a time to raise the capital for a good renovation and have seldom later regretted the sacrifice made.
It is sometimes said that renovation disrupts the occupants lifestyle, said Leslie, but that is only true if you do the whole job at once. If you tackle the task on a phased programme, there is no need for it to destroy the enjoyment of your new home and the satisfaction you derive from gradually transforming the building will be as great as the knowledge that you are adding value day by day.
Article by: www.greeff.co.za