House Improvments! - How much do they add to your house?

DARYALS

Hi this is my thought for today and I was wondering if people could help me.
My thought is simple, I would like to improve my house but I would like spend
my money wisely. I would like to spend the money on a home improvement but
the trouble is I dont know which to go for!! I have heard that attic conversions
dont add much value, I have also heard a second toilet adds 5% to the value of
a house, HEELLLPPP!!!! Can anyone give me a realistic appraisal of how much each home improvement would add?? At the moment my house costs £180K im thinking of a side extension with garage, x1 bedroom above and maybe a larger bathroom, and if the budget allows an extended kitchen diner down below. any ideas how much that would add?

Thanks in advance for any advice given.

lynzpower

Are you thinking of selling?

Personally I wouldnt bother with any of that business. Price your place right & someone will have it.

If anything a clean lick of paint, good declutter & a garden sort out and new kitchen doors if it need it would get my vote.

DARYALS

Hi,

No I'm not thinking of selling the idea is try and gain maximum investment back from any house improvements. I think that this is a safer alternative to shares etc and i think that it will probably bring a greater yield than the average high interest bank account? (5% - Mr. Taxman's bit so approx. 3.4% return)? and i think the longer you hold the house the more it should increase in value (not expecting a massive crash). If I buy houses in good locations I cant see how this should fail?? And I intend letting them out so get rent as well which will be ploughed back into more houses and more improvements.

Thanks

DAR

lynzpower

I'll leave it to others to point out how there is potentially a few flaws in your plan.

abaxas

Think carefully before you 'improve' anything.

DARYALS

Those last two posts were cryptic, can you guys expand please?

abaxas

DARYALS wrote:

Those last two posts were cryptic, can you guys expand please?

My point it that one man's (and woman's) beauty is another ugly.

Also you can actually lower value by converting things. Eg convertying a garage into a room. A garage still tends to be a status symbol so converting it loses value dispite adding in another room.

So my point remains... think carefully before your 'improve' anything.

lynzpower

ok, sorry I neednt have been so barbed. Apologies

Lets start at the beginning

Who is living in the house at the moment and what profit are you making on it?

DARYALS

Well I own the property outright and me and the misses will be living in it, we just want to make the most of our money. We are in a good location, probably the second best in the area we live so I think that selling would be no problem but if we can spend a little and make more than I'm all up for that !!! :beer:

Mrs_pbradley936

I am currently living in a house with superb bathrooms, wooden (not laminate floors)
drive paved with the most expensive paviers they make, landscaped garden and umpteen other upgrades. I paid no more for it than other houses in the road without all these improvements meaning that while I benefit the man I bought from is much worse off. That is because most people buy with a mortgage and when they send someone round to value the house those upgrades are said to be cosmetic. If you spend an extra £25K on your house you may not be able to add that on to your asking price. All that will happen is that you will get more offers (perhaps) and so it will sell quicker than something in the same road that is shabby.

Mrs_pbradley936

As for your business plan – it is great in theory and I know because I am a property investor myself but I bought my properties years ago when they were going for around £60K so my loan to value ratio is very good. If I wanted to buy those places now they would cost 3 or 4 times that BUT wait for the kicker, they do not bring in 3 times the rent!

By the time you have voids (empty periods between tenants), pay expenses and income tax you might find that what you thought to be a money spinner is anything but.