Reports show that more people than ever before are staying put and choosing to change up their houses rather than move somewhere new. Reports suggest that this is fuelled by the high prices of property and is expected to rise due to Brexit uncertainty; We also looked into the cost of moving recently and understand why people might be avoiding it.
External factors could be impacting this demographic specifically, including the rise of hobby DIYing due to platforms such as Instagram, You Tube and Pinterest but also the ‘splurge’ and indulgent feelings that may follow buying your first house after saving so hard for a deposit.
Radical changes to a new home could be equally – or more – expensive as moving to a new property. In fact, homeowners are anticipated to spend £15,419 on personalising their home after moving into it.
One of the most common areas of the house to be renovated are the bathroom and the kitchen. In fact, Tepilo found that 28% of those polled ripped out and replaced the bathroom in their house, whilst 25% changed their kitchens. These are exciting projects, and many opt into them because they will dramatically alter the appearance of the property, customising it to the homeowner’s personal taste. which is a large up-front cost for homeowners to take on. Moreover, they are labour intensive renovations, particularly if rooms are being rearranged, walls knocked down and space reconfigured. Unexpected costs could always crop up, too. The HOA suggests putting aside 10% of the anticipated job cost (including labour) to protect against any changes, fluctuations or costs that occur. Failing to prepare for these costs or stretching funds too thin or across too many projects at the same time could mean that progress is stopped or prevent homeowners from having a comfortable cushion to manage other living costs and unexpected bills that crop up. This could require emergency financing and the need for a payday loan or similar financial boost.
Many people undertake these big jobs because they believe they add value to their existing property. This could be true, as it is expected that a new kitchen could add around 6% to the value of your property. However, this increase does not take into consideration the initial cost of the renovation, thus any update to your home should be calculated based on its return on investment (ROI). Investigations also suggest that there is an ideal window of when to capture the most ROI if these are your planned changes or if you are looking to bolster your re-sale price. The same report suggests that there are other, more lucrative suggestions and things to avoid when looking to renovate a property whilst increasing its value.
The Changes That Could Add Value To Your Property
- Installing or updating the insulation to be more efficient
- Restoring or installing hardwood floors
- A restored fireplace or installing new fitted blinds and shutters are also found to be some of the top features buyers look for.
- Upgrading your garage door, front door and windows to be more energy efficient
- Introduce smart technology and smart appliances into your home, like your boiler or electric car charging points
Please note, all expected value added and ROI will be dependent on market conditions.
The Changes To Your Property That Could Cost You
Initially, homeowners might think that all improvements and modernisation will improve the property’s value. Unfortunately, that is not always the case. One of the biggest issues for re-sale prices is being able to provide buyers with all the appropriate documentation at the point of purchase. This could even help you speed up the sale quicker, aiding surveyors in their review of a property.
Installing a swimming pool could cost homeowners around £35,000. This is because it is a labour-intensive job and could result in a lot of follow-up or fall out issues, such as re-plumbing and re-routing water mains, re-landscaping and it also eats into the available space, which might not suit all buyers. A swimming pool also has a lot of upkeep in order to maintain the hygiene of the water and ensure it can be used; as a result, the expected value added is only £2,000 which is hugely outweighed by the initial cost.
Merging rooms is another example of a home renovation that could cost you dearly. A very popular trend for interior design at the moment is large, airy open spaces, and these could add value to your home, but you should proceed with caution. For example, a popular alteration is to convert a smaller bedroom into a dressing room or en suite, whilst adding space onto the attached bedroom by moving walls. Some of these options (namely adding another bathroom) could add value to a property. Whilst this adds a luxurious, spacious feel, it also cuts down on the number of available bedrooms, which could make it less appealing to prospective buyers and their lifestyles, for example, those who need bedrooms for children. A top tip would be to utilise rooms to suit you but avoid making too many permanent changes. This will help keep renovation costs down, too. Experts also suggest, if it is possible, adding bedrooms will “immediately” add value to your property.
Here at Wizzcash, we do not want to deter you from making your house feel like a home and personalising it to suit you and your lifestyle if you want to. We don’t offer advice on the matter, we just want all property owners to be aware of the ramifications and be prepared, and financially able, to make the changes they want. If costs have cropped up, for example, you’ve burst a pipe during renovations and need to call an emergency plumber, Wizzcash could help. We provide short term loans to those experiencing financial emergencies. If approved, funds could be in your account on the same day.