Getting onto the property ladder can constitute quite the challenge. House prices continue to climb steadily while wages stagnate; this means that purchasing your dream home right off the bat is often an unrealistic dream. Instead, a lot of wannabe homeowners are purchasing fixer-uppers. It makes more financial sense to purchase a cheaper home and have the work done because, all-in-all, it tends to cost less. Most people get onto the property ladder with a starter home that they intend to live in until they outgrow the space and upsize. In order to get the best price for the health, you want to ensure that any improvements that you have made have added value to the property. This is why we have put together the following guide, so let’s get into it.
Renovations That Add the Most Value
While you will want to choose renovations that are going to add value to your home, you will need to think about which ones are going to make the most sense too. The renovations that tend to add the most value often increase the square footage of your home and make it bigger overall. This could be a single or multistorey extension or a basement, attack or garage conversion, or even a garden room. Obviously, you will need to consider the cost, for example, building an extension is more expensive than purchasing a cabin from Buy Sheds Direct; despite the name, their range isn’t limited to garden sheds, and they have a huge number of garden rooms which can add value to your property. All of these will increase the living space within the home and therefore add the most value.
There are several upgrades that you can make to your home that are both practical and add value. Start by assessing the age of your home; older homes are far less energy efficient. Updating the heating system as well as having new windows and doors fitted can add value to the property as well as saving you money on utilities. Other renovations that add value to your home tend to be more on the cosmetic side. Having a new kitchen or bathroom fitted can really help to drive up the value of your home as well as make life easier for you.
Finally, it is worth pointing out that the improvements will add value to your home; you need to consider the ROI or return on investment. Any renovations that you make won’t always add as much value to your home as it has cost to do. For the most part, you might only recoup a percentage of your investment. However, the improvements can also add value to your life in other ways by giving your family more room, increasing your enjoyment of the property or saving you money on your bills. This should be taken into consideration too.
Knowing Where to Start
Knowing your options when it comes to renovating your home is one thing; deciding where you want to get started is another entirely. There are several factors that will need to be taken into consideration, not just the amount of money it will add to the value of your property. The biggest element to consider is the needs of your family. The likelihood is that you will be living in the home while the work takes place. What renovation makes the most sense for your family? Do you need more room? Perhaps the home isn’t as functional as you would like it to be. You should start with the project that is going to add the most value to the lives of the inhabitants.
You will also need to think about how much money you have to put into the renovations right now. You might not be able to afford the work that you want, in which case you can save up and wait or get started on a smaller, cheaper project. Luckily, there are also ways that you can make the renovation cheaper; you can carry out some of the work yourself or find a cheaper compromise. Lastly, it is also worth thinking about how long you plan to stay in that home for. If you plan to move on in just a couple of years, then you don’t want to spend those years living in a building site. It also may not constitute the best ROI if you aren’t going to get to enjoy the renovations for that long before moving on. On the other hand, if you plan to be there for a while, then you will have the time to do all of the work that you want, and it makes sense to do so.
Things to Consider when Renovating
The success of your renovations will be directly affected by the efficacy of your plans. Simply put, if you want your renovations to go well, then you need to plan them thoroughly. After deciding on the job, you will need to start with the budget. Work out what you can afford to spend versus how much the renovation should cost. Most of the time, they will either come in on or over budget. Very rarely are they under. This means you might want to include a little cushion in your budget to account for this.
Once you have a clear idea of what you want to achieve and how much you have to achieve it, you then need to start shopping around for a builder or qualified tradesperson. It is unlikely that you will be able to carry out the work yourself, although you might be able to save some money by doing bits and bobs. Word of mouth is one of the best ways to find a good builder because online reviews and testimonials are not always trustworthy. Do you know anyone who has had similar work done on their home lately? It might be worth asking them about their experiencing; they could have some advice in addition to recommendations on tradespeople.
After you have found a builder that you are happy with, you should get to work notifying your home insurance provider. Your policy and premium are directly linked to the value of your home; once that changes, the policy could become null and void. They will need to be kept abreast of your plans so that any necessary adjustments can be made to your policy. It is also worth mentioning that depending on the renovation, you might need planning permission from the local authority. On some occasions, your builder will work with the council to secure this, but it is likely that you will need to submit an application too.
Finally, you should also take into account the other homes in your area. It is really easy to get swept up with home improvements, but if the other homes in the area aren’t worth that much, it can limit the potential value that you can add to your home. Avoid outpricing. If your home is worth a similar amount or less than your neighbours, then go for it; if your home is already worth more, then when the time comes, it could put off potential buyers.
The Takeaway
Oftentimes, making improvements to an older, outdated home is one of the ways for you to make the most out of your money when trying to get on the property ladder. Of course, compromises might still need to be made, but for the most part, it makes sense both financially and practically, you have the opportunity to tailor your home to the needs of your family.
