Homeowner Loans To Add Value To Your Property

Homeowner Loans To Add Value To Your Property



Homeowner Loans to​ Add Value to​ Your Property
First time buyers receive a​ great deal of​ attention at​ the​ current time due to​ the​ increasing difficulty of​ making that first step on​ the​ property ladder .​
It is​ rarely documented however of​ the​ difficulties facing homeowners looking to​ move up the​ property ladder which is​ too becoming increasingly difficult.
Recent research shows that the​ average upscale from a​ two to​ a​ three bedroom property now stands at​ £27,​100 .​
Those looking to​ upscale from a​ three to​ a​ four bedroom house face the​ biggest hike in​ price at​ £64,​032.
As a​ result of​ these differences in​ price,​ coupled with the​ fees involved in​ moving home,​ more and more people are looking to​ use homeowner loans to​ improve & extend their current home to​ take the​ effect of​ upsizing.
When buying a​ property,​ many property developers will look at​ the​ potential to​ improve,​ modify and extend in​ order to​ increase the​ value .​
This is​ also a​ technique now used by many buyers looking at​ the​ potential for home improvement.
It can be difficult enough to​ buy property,​ with many considerations that must be taken into account .​
There are many issues that can reduce property value let alone increase it; however the​ type of​ property you​ buy can dictate your ability to​ improve it​ or​ even make any additions at​ all.
The type of​ property that best suits improvement will depend on​ the​ nature of​ work you​ would like to​ perform .​
For example,​ if​ you​ are planning to​ convert a​ loft in​ an​ extra room then it​ is​ important that there is​ enough room to​ stand up in.
Sometimes the​ easiest and cheapest way to​ increase your home’s value is​ to​ invest in​ an​ improving,​ up and coming area using a​ homeowner loan .​
Signs that an​ area’s property market is​ set to​ improve can be relatively easy to​ find .​
These signs may include looking at​ particular areas or​ streets that are already popular with buyers .​
It is​ often the​ case that as​ particular streets or​ areas increase in​ value,​ buyers are priced out of​ their preferred location,​ so move as​ near to​ it​ as​ they can afford.
The important thing to​ remember is​ that there is​ no guarantee that any improvements made on​ your property will result in​ an​ increase in​ value .​
Buyers in​ different locations will be after different things .​
It is​ an​ important consideration to​ ensure that you​ are offering potential buyers what they really want .​
For example a​ conservatory may be appealing to​ some but not to​ others
A good yardstick is​ often to​ consult the​ local estate agents who much a​ property would be worth subject to​ improvements being carried out,​ such as​ a​ new kitchen or​ a​ conservatory.
Often it’s the​ smaller,​ cheaper improvements that can generally offer higher returns than the​ more expensive ones .​
The larger and more expensive jobs such as​ converting your loft or​ basement may seem appealing to​ buyers,​ however they are often unwilling to​ pay a​ premium that meets the​ expense and effort of​ carrying it​ out.
The cost of​ any home improvement and the​ likely return will vary hugely on​ the​ type of​ property and the​ area that it’s located .​
Very few developments come in​ under budget with the​ majority coming in​ over budget .​
Quote received from builders can often be on​ the​ optimistic side .​
It is​ therefore prudent to​ over budget for works
Below is​ a​ rough guide of​ the​ costs versus the​ benefits:
Loft conversions:
Cost: £15,​000 to​ £35,​000
Potential value increase: £20,​000
Difference: - £5,​000
A loft conversion must be done properly in​ order to​ increase the​ value of​ your home .​
a​ very important consideration is​ that it​ cannot be classed as​ a​ loft conversion unless it​ meets specific building & planning regulations .​
Your local council will be able to​ give advice on​ what those rules are.
Basement conversion:
Cost: £100,​000
Potential value increase: £20,​000 to​ £25,​000
Difference: - £77,​500
A basement conversion is​ among the​ most expensive of​ home improvements .​
Recouping the​ initial outlay when selling the​ property is​ very difficult let alone making a​ profit .​
In some case it​ can however be very beneficial when selling the​ property if​ used as​ an​ extra bedroom.
Extension:
Cost: £30,​000 to​ £50,​000
Potential value increase: £20,​000 to​ £25,​000
Difference: - £17,​500
An extension is​ fast becoming a​ popular alternative to​ moving home in​ order to​ upsize .​
You will usually have to​ sacrifice garden space which can of​ course have a​ negative impact on​ your home’s value .​
Before commencing with any planned work it​ is​ important to​ consult your local council as​ there may be restrictions on​ the​ height and proximity to​ boundary lines of​ any addition.
Off-Road Parking:
Cost: £1,​000
Potential value increase: £5,​000
Difference: + £4,​000
Again,​ this work requires consultation with the​ local authority as​ the​ job may involve altering the​ height of​ the​ curb .​
This can prove to​ be one of​ the​ cheapest and most effective improvements that can be carried out.
Conservatory:
Cost: £10,​000 to​ £15,​000
Potential value increase: £12,​000 to​ £19,​000
Difference: £3,​000
Conservatories may not seem quite as​ attractive in​ today’s market as​ they once would have done to​ the​ potential buyer .​
Adding a​ conservatory is​ an​ expensive exercise and would perhaps be best considered for personal use rather than as​ a​ tool to​ increase the​ value of​ the​ property.




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