For most of us, our home will likely be the single biggest purchase we make in our lifetime. Unless you’re a big time investor or an oligarch with an interest in superyachts, the chances are that your home will be your biggest financial asset. And, like most assets, you should be looking to grow your investment as much as possible.
There are a number of proven ways to increase the value of your home, with some involving a little more time and expense than others.
Convert Unused Space
In most bigger homes there are 2 spaces which are rarely used efficiently – the attic and the garage. The attic is generally used as a dumping ground for anything which isn’t really needed but you can’t bring yourself to throw out, while up to 90% of garages are never used to store a car.
Converting your attic or your garage is the quickest way of adding an extra bedroom and bathroom to your property, which can substantially increase the value of your home. There’s obviously a decent financial investment involved, but there’s some sense in taking out a loan to improve your home when you know you’ll get more than the value back when you sell.
Focus on Your Kitchen
If you’re looking to add one showpiece room to your house, focus on the kitchen. It’s one of the busiest rooms in the house and a well-designed kitchen is something which really attracts buyers and helps add value to your home.
The key is to be sensible with your investment here. A new kitchen can add around 5% to the value of your home, so try to keep the budget for the renovations in line with the value of your home.
Try to include plenty of counter space and storage space, and stick with up to date appliances to prevent the kitchen looking outdated in a few years.
Update the Bathroom
A new bathroom can add up to 3% to the value of your home, and it’s a space that can be renovated relatively cheaply. You can install modern fixtures, a new shower and screen and freshen up the decor to help give the place a more modern look, and it won’t cost much to do when you compare it to the potential added value.
Build an Extension or a Conservatory
When it comes to adding value, there’s nothing quite like an extra room. Building an extension can add more than 10% to the value of your home, while a conservatory can add around 7%.
There are a couple of things to be wary of when you’re looking at adding these extra rooms, however. If you’re opting for a conservatory, there’s a real risk that it can look ‘bolted on’ and that can put people off. Try to pick something which fits the design of your house to help add maximum value.
If you’re going for an extension, don’t go too crazy with it. You’re looking to add enough value to justify selling for more than the other homes in your area, but you don’t want to price yourself out of the market. People looking for a far more expensive property may not be looking to live in your area, so just be smart when investing in an extension.
There are a huge number of ways of adding a little extra value to your home, and by picking the right ones for your property you can help gradually increase the sale price and improve your return on your investment. Try to be aware of the current housing market too, as selling at the right time can also help you get a higher price. Predicting the best time to sell is extremely tricky, so try to pick a figure you’d be happy with and make a move when you can get it.