If you’re a homeowner, then there is a strong chance that you’ve taken a look at all of the improvements that you could make to your home and researched just how much they cost.
While you would probably assume improvements to a home would always add to a property’s value, not all changes are as profitable as you may think and some renovations could even negatively impact your home’s price tag.
Measuring against the average property value in the UK (£225,621) Go Compare Home Insurance set out to discover the average cost of some of the most common home improvements and how they affect a home’s value once completed.
According to their research, the most profitable upgrade to a home is installing a brand-new boiler, while this may set you back by £1,995 it is estimated that this could increase the home’s value by £9,024 (4%) which is a huge profit of £7,029.
Costing a considerable amount more, but adding the same amount to a home’s value is central heating, installing a new system will add £9,024 property’s price tag, but it will cost you approximately £4,250. This is still a profit of £4,774, but not the massive profit margin of a new boiler.
In third place in terms of profit was knocked through rooms, according to the report creating more of an open space throughout the home costs an average of £1,750 but raises a home’s value by £4,512 (2%), resulting in a profit of £2,762.
Solar Panels? Not so popular…
What may come as a surprise is the upgrade that had the largest negative impact on a home’s value. The study found that installing solar panels not only cost an average of £5,000 but knocked £4,512 off the value of a home. While you may recoup some of these losses in the savings on your power bills, it seems that not everyone is a fan of the aesthetic.
Henry Pryor a property buyer who conducted the research, offered his advice on the best way to approach improving your home “Most buyers prefer to pay for the opportunity to be able to add an attic conversion, kitchen extension or convert a basement. Getting planning permission to do the work is frequently the best investment you can make leaving the actual choice of layout, decoration and equipment to the next owner,
“Improving the green credentials of a house usually pays, such as a new boiler, insulation or energy saving measures along with security improvements will usually pay off but some additions like solar panels will be hard to get a payback on immediately,”
Ultimately get the best advice and this is where your local Fife Properties Sales Professional can help. So contact us today to discuss this further.