The housing market is incredibly competitive, and for many homeowners today, it is hard to get any mobility. Getting a foot on the property ladder is a challenge in and of itself; upsizing is simply out of the question for many people. This is why a significant number of homeowners are opting to renovate instead of move. Not only this but there are also a lot of first-time buyers going for fixer-uppers which need work too.
In essence, renovating is on the rise, and it can help to boost the value of your property, too; that being said, there are a few things that you should keep in mind, keep reading to learn more.
An Important Caveat
Before we really get into it, it is important to point out that while renovations do definitely add value to your property, they will not always add more than they cost. There are absolutely instances when you will, unfortunately, only recoup part of the cost of the renovation in the increase in your property’s value. That being said if you are carrying out these renovations for your family and to make your home more habitable, then they will always be worth it, regardless of the financial gain.
The Renovations That Boost Your Home’s Value the Most
There are a few renovations that add more value to your property than others, so if this is your ultimate goal, then it is worth considering the following:
- New kitchen & bathroom. Installing a new bathroom suite or a new kitchen that modernises the home and improves functionality can add up to 10% (for a kitchen) and up to 5% (for a bathroom).
- Increasing the liveable space. There are a few different ways in which you can increase the square footage of your home, like an extension, a loft conversion, a garage conversion or even a garden room. A double-height extension can add up to 11%, a loft or garage conversion up to 20% and a garden room up to 5%.
- A driveway. If your home doesn’t already have a driveway, then building one can add up to 15% to your home’s property as well as make accessing your home more convenient for you.
- New windows & doors. Installing new double or even triple-glazed windows and new doors can make your home more comfortable in all weather and can add value, although it is difficult to assign a percentage value.
Choosing What Renovations To Do
When trying to work out which renovations to choose from, there are several things that you will need to take into account. Firstly, what should be a priority? Is there anything about your home that inconveniences you or your family regularly? In which case, it would make sense to start with them. Maybe you’re sick of having to park down the road because you haven’t got a driveway, so you can’t really get outside your house, so a driveway would make sense. Or, perhaps you and your family are living on top of each other, and you need more space. If your home is functionally sound, then you might want to think about the aesthetics and go for a bathroom or kitchen remodel.
You should also think of your budget and the practicalities of the job. Can you afford the renovation at this point? If not, you might want to pick something that you can afford or wait a little longer and save up your money a little until you can afford it.
Finally, the intricacies of the job itself are also worth a thought. Some renovations can make living in your home a bit tricky; they can turn your property into a building site and get in the way. Are you in the position to live through this right now? If you’re pregnant or have a newborn, then you might want to wait or even move out for the duration of the renovation.
Paying for the Renovations
Speaking of the budget, you are going to need to put some thought into how exactly you are going to pay for the renovations. Obviously, it makes sense to try and make the projects as cost-effective as possible to allow your money to go further. Before you can start to think about how you are going to pay for the renovations, you first need to know how much they are likely to cost. You should get a few quotes from local tradespeople like a carpenter or joiner, which you can find using a site like MyBuilder. Some people will be fortunate enough to have the money in their savings to put towards these renovations and pull them off without any financial assistance, and others won’t. If you don’t have the money in your savings, then you’ll have to explore your other options.
This might mean remortgaging or borrowing against your home. You’ll need to have been in the property for quite some time for this option because you’ll need to have built up some equity in the home. If you are going to remortgage, you’ll also need to have your home valued. If you don’t fancy remortgaging, you could instead opt to take out a personal loan. However, it should be pointed out that the repayment term is often shorter and the interest rates higher. It may also be worth looking online; some home improvements are often partially subsidised by the government or other businesses in the form of grants – take solar panels as an example.
Tips for Success
As mentioned above, having a budget is super important. However, even if you have received a quote, there are issues that could arise during the renovation, which can drive up the price, and if you haven’t accounted for this, it could mean the project comes in over budget, and you haven’t made any concessions for this. When you are freeing up funds for the project, you should always have at least 10% (although ideally 15%-20%) on top of the quote to make sure that you have enough to cover any unexpected costs that might arise.
Regardless of whether boosting your home’s value via these renovations is at the forefront of your mind right now or not, it is something that you will need to consider. This is because when you do eventually come to sell your home, you need to be aware of what the average house price in the area is. You don’t want to carry out too many renovations only to outprice the other properties in the area because this makes it harder to sell your property on.
Finally, before you undergo any renovations that are going to affect the value of your property, you need to reach out to your home insurance provider. They will need to adjust your policy, you see, so failing to tell them could void your policy, making it impossible for you to make a claim. In some instances, they might need to adjust your policy or suggest you take out additional insurance whilst the work is being carried out.
To Conclude
There are, of course, a number of reasons why you might want to carry out some renovations on your home, the biggest likely to be tailoring your home to the needs of your family. However, the boost in house value is also probably somewhat of a motivating factor too. If you want to get started with renovating, then make sure you have taken on board the above tips and advice to make the process go as smoothly as possible.