Home improvement is all the rage at present as homeowners believe this offers a more reliable method of adding value to a property than leaving the value open to market forces alone. In fact, new findings show that post-recession Brits still value their bricks and mortar as their primary investment, with 61 per cent planning to invest in their property in the coming two years as a means of offsetting the losses of the downturn. (*)

Nonetheless, while doing up your place can push up its price, the value may only represent a fraction of the actual cost, so you need to do your sums very carefully to avoid getting stuck with a DIY disaster. Here we look at the home improvements offering some of the best returns on investment.

Loft conversion

A loft conversion may be a major project, and can set you back around £16,000, but can also be one of the most cost-effective ways to add space given that it could add as much as £25,000 to your property. (**)
But before starting on any project you will need to get building regulation and planning permission, and you should also consider getting advice from a chartered surveyor, as a bad loft conversion can detract from the value of your home.

Update your kitchen

By installing a new kitchen you can add 5 per cent (***) to your home depending on size and spec, but it is important to ensure that expenditure is kept in proportion to the original value of your property.
Updating a kitchen can start at around £5,000, but you need to choose the appropriate level for the value of your home. Worth remembering there are cheaper ways to revamp a kitchen such as re-facing the kitchen cabinets, which will cut costs dramatically.

Painting and redecorating

It’s worth revamping your home with a fresh lick of paint and wallpaper, as these cosmetic improvements should cost you less than £1,000, but could add more than double this amount to the value of your property. (**)
Nonetheless, don’t get too personal or wacky - neutral colours can be the most effective.

Add an extension

Quality, well-proportioned extensions can add 25 per cent to the value of your property (****), but while a basic extension will cost from around £10,000, you need to check the selling price of properties in your area with extra accommodation so you can be realistic about how much you should spend.
The key is to keep alterations in line with the style of the home, size of plot and layout of accommodation.

Build a new bathroom

A new bathroom can give your property a sizeable lift, but the key is to keep the costs down to ensure you recoup the initial outlay which could be upwards of £3,000.
A separate bathroom is likely to add more value than a new en-suite as long as you think about convenience and layout, and it’s advisable to aim for fewer, more expensive fittings to keep the space simple.

Get energy efficient

Fuel efficiency and energy-saving measures are a real winner as the “green factor” takes hold, and with an initial outlay of just over £1,700, they are perceived to add two and a half times their initial outlay to the value of a home at just over £4,300. (**) This will also help reduce heating bills and improve a home’s energy efficiency - saving you money in running costs.

Spruce up your garden

Garden improvements may come cheap at a cost of just over £850, and you can soon reap the rewards of spending time on outside space, as this can add around £1,400 to the value of your home. (**) But be sure to avoid putting in objects such as statues which some buyers might find tacky.

Improve home security

Home security measures also add twice as much to the value of the house as their initial outlay cost - costing around £1,280, but adding more than £3,000. (**)

Add a conservatory

A new conservatory is likely to set you back anything from £10,000, but will add value to your home as it gives additional space and light and may not require the planning permission which an extension would need. A £15,000 conservatory, for example, could add as much as £30,000.

Give your home an external makeover

The front of the house is the first and last impression a potential buyer will see, so make sure it’s smart and well kept. The cost will depend on the work that needs doing - such as repairing windows and dripping gutters and refreshing the front door - but the lift in value could be upwards of £1,000.

Take advice

Before embarking upon any home improvement project it is crucial to bear in mind that every case is different, and that the returns will depend on factors such as your circumstances, region, type of property and location.

If you’re spending a lot of money and want to ensure you are adding value for every pound you spend, it is well worth taking professional advice.

(*) Ratedpeople.com, a match-making service for home improvers and recommended tradesmen
(**) Halifax
(***) The 10 Best Ways to Add Value to Your Home by Sally Coulthard
(***) National Self Build and Renovation Centre

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Remember, all of these tips should be preceded by a check of your home insurance and contents insurance policy to check you are fully covered.

Source: http://www.articletrader.com

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