First-time buyers get a lot of attention right now because it's getting harder and harder to get that first step on the property ladder. It is not often written about, though, how hard it is for homeowners to move up the property ladder, which is also becoming harder.
Recent research shows that moving from a two-bedroom to a three-bedroom home now costs an average of GBP27,100. Those who want to move up from a three-bedroom house to a four-bedroom house will pay the most, GBP64,032.
Because of these price differences and the costs of moving, more and more people are looking into homeowner loans to improve and add on to their current home to make it feel like they are moving up.
When buying a property, many real estate developers look at how they can improve, change, or add on to it to make it worth more. This is also a method that many people now use when buying a home with the idea of making improvements.
Buying a house can be hard enough on its own, since there are many things to think about. There are a lot of things that can make a property's value go down, let alone go up. Depending on the type of property you buy, you may not be able to make any changes or improvements.
What kind of property is best for the work you want to do will depend on what kind of work you want to do. For instance, if you want to turn a loft into an extra room, you need to make sure there is enough space to stand up.
Investing in an improving, up-and-coming area with a homeowner loan is sometimes the easiest and cheapest way to add value to your home. There are often easy-to-spot signs that a real estate market is about to get better. Some of these signs could be things like looking at areas or streets that buyers already like. When the value of a street or neighbourhood goes up, buyers are often priced out of their first choice, so they move as close as they can afford to it.
The most important thing to remember is that you can't be sure that any changes you make to your property will make it worth more. Different places will have different things that people want to buy. It's important to make sure that you're giving potential buyers what they really want. For example, some people may like a conservatory but not others.
A good way to figure out how much a house is worth is to ask a real estate agent in the area how much it would be worth with improvements like a new kitchen or a conservatory.
Most of the time, the smaller, less expensive improvements can pay off better than the bigger, more expensive ones. Larger, more expensive projects, like converting your loft or basement, may seem appealing to buyers, but they usually won't pay a premium that matches the cost and work involved.
The cost and likely return of any home improvement will depend a lot on the type of property and where it is. Most projects go over budget, and only a small number come in under budget. The quotes you get from builders are often on the high side. So, it's smart to overestimate costs for work.
Here is a general idea of the costs and benefits:
Converting a loft:
Cost: between £15,000 and £35,000
Possible price rise: GBP20,000
Change: - GBP5,000
To raise the value of your home, a loft conversion needs to be done right. One of the most important things to remember is that it can't be called a "loft conversion" unless it meets certain building and planning rules. Your local council can help you figure out what those rules are.
Basement conversion:
Price: 100,000 GBP
Value could go up from GBP20,000 to GBP25,000
Difference: - GBP77,500
A converted basement is one of the most expensive ways to improve your home. It's hard enough to get back what you put into the property in the first place when you sell it, let alone make a profit. However, if it is used as an extra bedroom, it can be very helpful when selling the house.
Extension:
Price: between £30,000 and £50,000
Value could go up from GBP20,000 to GBP25,000
Difference: - GBP17,500
An addition is becoming a popular way to make a home bigger without having to move. Most of the time, you will have to give up garden space, which can lower the value of your home. Before you start any planned work, you should talk to your local council because there may be rules about how high an addition can be or how close it can be to a property line.
Parking off the road:
Price: £1,000
Potential value increase: GBP5,000
+ GBP4,000
Again, this work needs to be discussed with the local government because it may mean changing the height of the curb. This can be one of the most cost-effective and least expensive ways to improve your home.
Conservatory:
Price: 10,000 to 15,000 GBP
Possible price rise: from £12,000 to £19,000
Difference: GBP3,000
On the market today, conservatories may not be as appealing to buyers as they were in the past. Adding a conservatory costs a lot of money, so it might be best to do it for your own use rather than to increase the value of your home.
