Cost effective ways to maximise the value of your home
If you’re looking for a way to secure your financial future through investment, one of the best routes is upgrading your home. Your house isn’t just somewhere you live, it’s a relatively secure financial asset that can be improved and increased in value. In this article, our Hertfordshire financial advisors explain how to unlock the maximum value of your home.
1. Loft conversion to bedroom
According to MoveWithUs, the best way to add value to your home is to create another bedroom in your loft. Doing so could add up to 10 per cent to the value of your home.
One of the modern, light-drenching styles described here creates the maximum amount of space, and attract the highest number of potential buyers.
Not only that, but creating that extra space enables you to take advantage of it while you’re still living in the property. You could use it for storage, as a guest room, or potentially invite a lodger to stay with you for rent.
Depending on the size of your loft, you should expect to pay anything from £15,000 to £40,000 for the transformation, and you will also need to inform your insurer.
2. New kitchen
While you’re not creating additional by upgrading your kitchen, you could increase your home’s value by up to 6 per cent by doing so at a cost of up to £8,000. Kitchens are often the focal point of the home, so making yours as attractive as possible is a worthwhile chore.
Be careful not to personalise the space too much. Contemporary, open-plan kitchen/dining room lay outs are trending at the moment, and filling your space with high-tech, smart kitchen devices like these ones.
If you do, many buyers will restyle it once they’ve moved in, and this could decrease their buying offer. Create ready-made space and buyers will flock.
3. Extra bathroom
On the more moderate end of the scale, creating an additional bathroom might cost you between £2,500 and £6,000, but could add an additional 6 per cent to your home’s value.
One of the best ways to do this is to build an en-suite into one of your bathrooms as there is a growing consumer demand. Alternatively, you could take advantage of the unused small spaces your home has to offer – like the cupboard under the stairs – to turn it into it into a comfortable, value-adding bathroom.
4. Conservatory extension
The return-on-investment of conservatories might not be as high as some of the other home upgrades of Hertfordshire financial advisors have suggested. However, producing a value increase of roughly 5 per cent, given an investment of between £4,000 and £10,000, a conservatory is certain to add another dimension to your home, and be an attractive selling feature.
In addition, you may not need to give up garden space to build your conservatory by adopting a rooftop-style conservatory that is becoming extremely popular in more urban areas.
5. Well-kept garden
While upgrading their homes’ interiors, some people might neglect their gardens. Your front garden is the first thing potential buyers will see, and their first impression might make or break the sale.
While tending to your garden could cost roughly £4,550, you could see upward of an 88 per cent return-on-investment (£4,000), making it a highly profitable way to invest your money.
You might consider the current trend towards self-sustainability in gardening. Create raised beds and take advantage of all available space. This will be an attractive selling feature to potential buyers.
Of course, these are only some of the larger improvements you can make to your home, and there are numerous others that might cost less and make you slightly less money.
Investments like all of the above are all worth considering if you’re looking to create a stable financial future. If you’re looking to see how home upgrades could increase your personal wealth, speak to one of our Hertford financial advisors today.