Will renovating your home help you in today's property market?
My answer is yes, but what is yours?
Property investors and home owners can definitely boost the value
of their properties through home improvements. Renovating has increased
in popularity over the last decade and we see more and more of the "golden
oldies" reaching top selling prices.
"Older apartments are becoming like hens teeth nowadays as buyers realize
the value to be found in these properties" This according to Sharon Westcott
of Lew Geffen Sotheby's International Realty.
I have seen a dash of paint making a big difference in the price of a property.
In many cases owners are now spending more on the renovations than on the purchase
of the property. Bearing this in mind, it is important to get it right
if selling your property in the near future is what you have in mind.
By doing it right you could be handsomely rewarded.
Renovations must be done in such a way that it suits the taste of the next
buyer. But this is not where it ends;
- Do your homework
- Do market research
- Consider your options and how your actions could influence the resale value
of your property. The golden question, is it worth your while to renovate?
- Money spend on renovations must be recouped when you sell your investment
- If your consider extending you should make sure if it will not be more viable
to sell and buy a bigger property
- Get advise from a real estate agency or property valuers
- Take a good look if the basic structure, foundation etc. of your property
is sound before you start any renovation. For example, it does not help spending
money on renovating your kitchen if the roof of the property is leaking
- Cap the amount that you will be spending on your renovations and the easiest
way to do this is to find out what the best house in your street would sell
for. Use this as your guide as to the maximum you should spend. According
to one of the financial institutions in South Africa a home more than
15%-20% pricier than other properties in its neighbourhood will be unlikely
to sell as buyers can get property in a better area for a similar amount
- In this instance of renovation it is not location that will count but impression..
impression.. impression!
- Be aware of trends in your area as particular renovations can add value
in certain areas. Building a swimming pool might work in one area and not
in another
- Decide on the style and make sure that it suits the original style of the
property
- Don't underestimate the true costs of renovating. Get several quotes for
the work beforehand
- Make sure that what you do is done correctly and in a professional manner
and professional standard
- Keep receipts and guarantees on file to show estate agents and prospective
buyers
If you are not considering renovations with selling in the near future you
should give it a good second thought. Think about your future and what you will
be needing. Will you need extra rooms for planning a family? Will stairs work
when growing older?
Where do I start?
Clean and good looking is what buyers are looking for. Forget building a swimming
pool the experts warns us. For the best return on your investment you should
invest in renovations in the kitchen, bathrooms and garages. According to property
valuers and estate agents the most notable areas for improvement are en-suite
bathrooms, modern kitchens and garage space as these are the features that sell
homes and grow value, and if homeowners are going to spend money on renovations
it should be in these areas. Afterall, who has the last say, the husband or
the wife?
Then on the other hand, renovations are not just good for selling a property
but also for letting it. A good looking property can fetch a high rental
and yield a good return as we see rentals increasing in South Africa.
Large homes with sea views in areas like Umhlanga, lower La Lucia and Mount
Edgecombe in Kwazulu Natal can fetch between R20k - R25k per month.
Remember, your house is your biggest investment therefore if you are going
to do it, do it right!
The editor
Pat Jewell
www.cyberprop.com
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