save up - or invest in house?

gardenjenny

Any opinions as to which one is more lucrative? Would I make more money in a high interest savings account or by spending on diy projects so as to cash in on a house sale?

Im not selling at the mo, but probably will be in a few years time and wanted to ask this. After paying off debts (non interest debts) and bills I only have around £100 spare cash each month and am in two minds as to the best use for it. So far ive been investing in my house and have done the garden landscaping, bathroom and kitchen which everyone says are the most valuable investments. (ive also done the main rooms and put in a new front door) Should I now start saving, or should I carry on? The jobs left to do are putting in a hallway and landing carpet (the old one is horrifying), painting the outside of the house, two large decks for the garden and the biggie - replacing old wooden windows with upvc and converting our big living room window into french doors onto the garden. I think this last one would be a huge selling point, especially if it leads out onto a nice deck and showcases the lovely big lawn we've had put in. We also know people in the trade and will get this done much cheaper than the average.

My husband thinks that as our house is a first-time buyers type and in a pretty poor area, that I would be pricing people out of buying our home. He also thinks that people expect - and even seek - the chance to put a bit of investment in themselves. Any opinions welcome!

Thrugelmir

You haven't said if you've got a mortgage on your property.

PasturesNew

It sounds like you've been watching too much HutH - and maybe your OH has a point.

Save your money.

BitterAndTwisted

Property is not an "investment", at least in the short term at them moment. If you thought it was, you've missed the boat by about 18 months, minimum. If you don't have the cash to buy outright and sit tight for a decade or more, don't bother. Much too risky

gardenjenny

We do have a mortgage yeah, and the house is already worth at least three times what we paid for it as we bought it eight years ago for a song as it was in a right state! its now liveable so maybe ive done enough

pie81

I would think if something looks grotty/broken and a buyer would definitely feel it needed fixing, then it's probably worth doing (eg if your external paintwork is really dirty/flaking, worth repainting). But things like decks, uPVC windows etc probably not worth it, new buyers might not even like those things.

You could always ask a local estate agent for their view as to what would add value - many are happy to give this sort of opinion as they hope you'll use them when you come to sell.

Personally if I were you I'd keep the spare cash in a high interest account (or use it to pay off mortgage unless you're on a super low rate). You never know when you might need it.

Katie-Kat-Kins

The upvc windows are a worthwhile investment, they will help you when you come to sell the property and will also save you money on your energy bills. They are high on my list of things to do. There are figures for how long it takes these windows to pay for themselves in energy saving alone.

The other cosmetic stuff is never really likely to increase the value of your home by the amount you spend on them and if the property isn't in a desireable area this is even more risky. People will want a better area if they have the money to pay higher prices.

I'd do the windows, and things that you genuinely want to do for your own enjoyment and save the rest. Don't kid yourself that the garden etc is an investment, it is just a luxury for your own enjoyment.

Out,_Vile_Jelly

I wouldn't assume that decking is some sort of guarantee of increasing value- will no doubt look quite dated in a few years, and many see it as structurally problematic (rat magnet, apparently) and ugly. What's wrong with a patio?

Spending £x on a property does not mean it automatically adds £x to the price you want to sell it for.

cashndash

If you are planning on keeping the house for a while yet, then you should do things that will make you happy!

If you are doing it to sell, the windows and kerb appeal would be the limit.

some people want a project, some want to move in and get on with life.

Idiophreak

BitterAndTwisted wrote: »

Property is not an "investment", at least in the short term at them moment. If you thought it was, you've missed the boat by about 18 months, minimum. If you don't have the cash to buy outright and sit tight for a decade or more, don't bother. Much too risky

Did you even give the OP a glance? A quick scan maybe? Or did you see "invest in house" and start the rant from there.

The OP is talking about investing in *their own* property, not another one - the downturn in the housing market is a good reason people are looking to do anything they can to add a little value to their own home.

As to the OP, I'd echo the other comments on here - do stuff that will make the house "neat and tidy" for investment value, do the rest of the stuff for your enjoyment value.

Putting in a new kitchen/bathroom immediately before sale *might* add a couple of grand to the sale price, but after a couple of years people will be thinking these need replacing anyway. Decking's a very personal thing and there is a very real risk of pricing yourself too high when selling if the area isn't great. So do these things for fun, if you want, but in terms of a serious investment, savings or overpayment seem to be the way forward...

g_attrill

UPVC windows are always worth doing - people will mentally deduct the cost from your asking price since it's regarded as essential. Also it will give you a much worse energy rating if you sell. Look into any other insulation you can put in, most of it is cheap enough.

Bathrooms and kitchens won't increase the value significantly if they aren't "modernising" a very old installation, but will make it easier to sell.

If the carpet needs replacing, then replace it!