If you have the money, or are considering taking out a home improvements loan, what will give you the best return on investment? Here we detail some top suggestions for maximizing your return on investment by making the right choice on what to upgrade and repair. Financial rewards could come from both improving the appearance of your home or making it more energy efficient to save on the cost of your energy bills. If you are thinking about selling a home or buying a house as a development, you will probably be most interested in how you can best use your money or a home improvement loan to give you the maximum increase in the value of your property.
Be sure to contact us to find out which home improvements will add the most value to your property if you are planning to sell. With a little bit of planning and effort, you can ensure that you get the absolute best return on investment when your home is sold, allowing you to pay off any loan taken out for improvements and making you some additional money.
Zopa have completed market research that shows that the average home improvement would increase the value of a home by 9% or nearly £24,000 (£23,837). In 2021, Barbour ABI reported that the South East were the ‘powerhouse of home improvement activity’ with 59% of home improvement applications being extensions, 13% loftworks, 12% being gardens buildings and work and 7% new or alterations to garages.
Loft conversions can be a really great way to add space and an extra bedroom to the property. Making this an ensuite can have a real impact. You will need to investigate if planning permission is required but this can be easily applied for by contacting your Local Planning Authority. Check first to see if planning is needed by visiting Permitted Development Rights. A loft conversion can give you the one of the best values for your money with around a 70% return on investment.
Like loft conversions, extensions can add more space to your home but tend to involve a bit more work and mess. Extensions can be single or double story and can involve making rooms bigger or adding additional rooms to the property. As with loft conversions, you will need to check with your Local Planning Authority, but you can expect a return on investment of around anywhere between 50-70%.
Zopa’s market research showed that a bathroom or kitchen refurbishment can add around a 50% return on investment respectively. They also make your home more attractive to buyers by providing a clean and modern look. Aim to keep any colours neutral as buyers prefer to see a blank canvas. The British Institute of Kitchen, Bedroom & Bathroom Installation (BiKBBI) is a government sanctioned and not-for-profit registered organisation dedicated to improving standards within the installation industry. They work with professional installers, retailers and manufacturers. BiKBBI registered businesses are fully insured, police checked, Gas and electric compliant, asbestos aware and work to an approved Code of Conduct.
Modernizing a bathroom can add value without requiring a complete refit. A coat of paint, change of tiles, coordinated accessories and fresh towels can make a really effective impact. If you can’t fit in a separate shower enclosure, changing a shower curtain to a glass screen gives a modern feel. A power shower and a bath are definite key features buyers will be looking for. There are many solutions for fitting a bath into your bathroom and, with a bit of research, you can find a variety of shapes and sizes. Underfloor heating adds a luxurious feel and can also make some more space allowing you to save the space where the radiator would be.
Research shows that home improvements on the exterior and garden can tend to give around a 14% return on investment and a £1,900 profit. Get windows cleaned, paint the outside walls, pressure wash the pathways, clear weeds and plant some colourful flowers and greenery. A well cared for garden can give a great first impression to potential buyers and give your home that much sought-after kerb appeal.
A conservatory can give a very high return on investment. Research has previously shown this home improvement can be up to 108%. Today conservatories can be used all year round so the addition will give additional space to either be used as a dining room or office. Quite frequently conservatories do not require planning permission.
Decorating your home can provide around a 62% return on investment. A room can very quickly be modernized by a replaster and a coat of paint. Rejuvenating flooring such as your carpets can bring about a very effective refresh of a tired looking interior. Return on investment typically tends to be around 50%. It might be that the carpets could just benefit from a clean. Opt for carpet in the bedrooms to keep these cozy but keep them out of the bathroom. Solid wood floors and natural stone can add a very luxurious feel to kitchen and bathroom areas.
Lighting is an excellent way to make an impact quickly and cheaply. It can transform a dull room into a welcoming open space and provide the right ambiance at the right time. Rooms with little or no daylight can appear quite dull. Open windows and blinds and flood your home with light as having the right lighting could make or break your sale. Velux roof windows and sun tunnels are another way to add light if the room does not have enough windows or it is not easily possible to add more. Consider adding some mirrors too as these not only reflect light but make spaces look bigger. Although changes in lighting will not make a high increase in value, they will improve how quickly offers are made on your property by making the rooms of your home lighter and more spacious.
These could encourage a faster sale and could give some return on investment with a higher price selling.
A home improvement loan is a great way to increase the value of your home and, with a little bit of planning, you can ensure that you get the best return on investment when you come to sell.
Author Bio:
Freeman and Gray Estate Agents are a professional and luxury estate agent. We have a wide range of properties for sale across Kent. If you are looking to sell your home, we can help you to get the best possible price for your property. Contact us https://www.freemanandgray.com/contact-us today to find out more about our services and how we can help you to get the most value for your property.