Cost of home improvements Vs. House Value

RollDeep

I have purchased my first house at a cost of £132,000, which is about right for a 3 bed semi in this area. 5 years ago the house sold for £160,000.

I want to fit some new windows, doors, a kitchen and a bathroom; however I'm concerned that I may spend more on these items than is normal for a house of this value.

For example, would a £5-7k kitchen fitted by myself be classed as excessive for a £132,000 house?

I would also like to fit a Jacuzzi in my new bathroom, and I doubt I'd have change from £2,500 once it’s all done (again fitted by myself).

My final concern is that I don't intend to live in the house for any more than 3-5 years, although I do intend to own in indefinitely. So I'm a little concerned that my expensive kitchen or bath would be ruined by a tenant in 3 years’ time.

Opinions and thoughts please, be as harsh or as realistic as you like.

red

Hi RollDeep,
Do you want to make the changes because you just prefer the look of new doors, windows, etc or are the old ones in a need for repair? If and when you rent out, you may need to update a lot of things you are talking about if it is looking tired or is in a state of repair.

I think the kitchen cost sounds high, unless it is particularly large and you are ripping everything out (appliances, flooring, wiring) and so I would look again at that cost.

The jacuzzi I think you can only do on the understanding that it is because you want one in...so, consider how much you really want one. It is your home and there is nothing wrong with spending on it because you really desire it, and there is the chance that it would attract a tenant to the property. That said, the upkeep etc could make you think it is not worth it, particularly with tenants.

My experience of tenants has been generally positive and have only found short-lets the issue. Long-term tenants have made my properties look really impressive and kept them well (most do not want builders poking around trying to make repairs so they are pretty good at avoiding them or making me aware of them early so it is not a huge job).

If you are going to rent it out, doing a lot of the work yourself is also a brilliant idea as you will be even more familiar with it and be able to make repairs on it in the future with confidence. HTH!!!

lostinrates

Re letting, i would not be putting in a new high worth kitchen if the existing one is high and npot to your liking.

We spoke to an agent recently when it looked like my husband was going to posted overseas for a couple of years and our kitchen, which is not a high end one and at least thirty years old, was deemed 'perfect for tenants' in our relatively high value house. The agents all said doing the kitchen before letting would be very foolish financially. They suggested making repairs to the three dodgy drawers, replacing the sink (which leaks) and putting in a few more sockets, which our kitchen is woefuly short on.


I think a clean, functional kitchen is a fair and basic requirement for a tenant. A high value one is not.

RollDeep

Hi,
Well the original kitchen etc. is 16 year's old so it is looking a bit dirty. I have specced up a more simpler but equally attractive kitchen for £3-4k so I may go with that one (this includes everything from floor tiles, wiring etc.)

Again the Jacuzzi doesn't actually cost that much more, but I think it would do me well at the end of a hard week. And I think little touches like this would make the house more attractive to tennants.

For the record, before I bought this house it was being rented out for £600 a month which is at least £150 less than other houses in the area. I think if I did the house up nice, but not lavishly then £800 a month is a sensible amount for rent.

Itismehonest

3-5 years is a long time when nobody knows what's happening in the property market & the world economy in general. Despite the huge number of threads on here about property prices, nobody truly knows what will happen & they could go either way or not move at all.

I think, maybe, you would be better to think in terms of either "This will be my home" or "This is going to be a business decision" from the very beginning & act accordingly but you'll have to be prepared for any plans to change as the property market climate changes.

Leif

Itismehonest wrote: »

I think, maybe, you would be better to think in terms of either "This will be my home" or "This is going to be a business decision" from the very beginning & act accordingly

I agree. You have to bear in mind that not all tenants are good. I knew someone who completely re-furnished a house - new kitchen bathoom, carpets, paint etc - and then had to work in Norway. It was let via an agency, on their more expensive scheme which included vetting and checks. Checks were not made. The house was let to a nutter - it seems that he was renting after burning his house down - who trashed it. The kitchen was full to the ceiling with filled bin bags. The bath was full of a foul black liquid, walls were ruined, floor boards damaged, garlic left all over the house.

Personally if I was to let a house, I would do basic decoration - basic but clean and pleasant - and no more. Then again I would never let a house if I intended to live in it again. I saw quite a few ex-rental places when looking to buy, and they were all a bit run down.

RollDeep

Some fantastic advice thank you.

I think you have swayed me to be very modest with my improvements.