When Home Improvement is not a Good Investment

With self-proclaimed property developers springing up all around the country, more and more people get to experience the joys and frustrations of being a landlord. In some cases, though, there are more of frustration and very little enjoyment, especially, when it comes to doing up properties for resale. It is quite misleading to think that each improvement we add to the property will automatically add value. Alas, this is not always true.

Fancy decor, granite countertops and posh plumbing can see you in the red after you fail to recoup the investment. The best thing is to do a proper research on the neighbourhood. If the majority of the houses on your street are rather basic (I’m trying to be polite) you cannot expect to sell your project at a £50,000 premium only because you’ve got a purple marble bath. The fact is that people buying on a “basic” street will not be able to appreciate your effort.

If it is at all possible (and I don’t see why not), visit a few of your neighbours’ houses and check the level of their interiors and finishings. When doing up your property, be a small step ahead of them… but only a small one.

It is very clever to pick the estate agent before you refurbish the house. Choose an agent who has local knowledge and ask him, what would be the maximum price for a newly refurbished house. Also keep an eye on 192.com property price results. It is very important to know the potential value of the property. Otherwise you just cannot budget properly.

One sure-fire way of increasing the value of your house is to add an extra room. Either it is a loft conversion or a ground floor extension, having another room = having a better price unless the money you’re going to spend on creating that extra room is more than you can get back when selling.

Installing a conservatory is generally a good way to increase the resale value of a house. However, a conservatory should serve a certain purpose. It is a leisure space and if the house hasn’t got a nice garden, you’ll hardly benefit from having a conservatory. It doesn’t make much sense building a conservatory onto a dark and narrow patio.

Decked areas. There are two camps out there – people who think that by adding decked area you reduce the amount of gardening work necessary; and people who will say: “who the **** put that decking on? Where will my flowerbeds go?” For that particular reason, don’t add decking areas to a resale property unless there is a barren plot of land or an awkward terrain that you just cannot be bothered to level out.

Garages (preferably pronounced “garahj!”). Again, two camps – I would feel insulted if somebody offered me a house where a garage had been converted into a silly sitting room because I keep my car in a garage. Others will love the extra space. Price wise, though, a garage adds value regardless of whether the potential buyers wants to keep his car under a roof or not.

So, whatever you do, keep your neighbourhood in mind! Posh is good but too posh is a bad investment.