How To Reap The Rewards of Home Improvement!
With many experts, home buyers and investors keeping a keen eye on the markets at the moment, it’s no surprise that there is so much data available showing the movements in the housing market. The figures seem to be showing that, despite the fact that house prices are still up to 4% lower than last year, the number of sales and mortgages are steadily increasing. And with lenders becoming more lenient once again, many people are looking t remortgage to improve their homes and repay debts.
One of the most popular ways to pay for improvements is through a remortgage. Remortgage rates are generally lower than personal loans and you can often save money over the medium term by benefiting from a great fixed or discounted rate on your total mortgage balance.
There are hundreds of different mortgage contracts available so it is vital that you research, and use the services of a mortgage broker if required to ensure that you are making the right decisions. Borrowing additional funds, known as a further advance, is generally much lower cost than personal loans too, so it is the better option of the two in terms of cost.
When considering what refurbishments to undertake, bear in mind that whilst some improvements may make the property more attractive to potential buyers, they may not actually increase the value. For example, redecorating or replacing carpets might improve the look of your home but won’t necessarily add any value to your property when you come to sell it in the future.
Updating the kitchen and bathroom is also a great way to add value. If you have a property that has a very old kitchen or bathroom, the exercise will benefit you greatly as it will not only add value to your property, but you will also be living in a higher standard too until you sell the property.
You must make sure any replacements look spacious, up to date, and are in keeping with the rest of the property, and are not too expensive for the area, spend too much and you will never make it back on a house sale because the property will have a ceiling price based on its location. A £20k bespoke kitchen will not suit a £200k terrace, for example, but will be a necessity in a £1m 5 bedroom home.
Increasing the floor space of the home is another, if expensive, means of adding to the value of the property. Changing the garage into a playroom, adding a study, or possibly creating a guest bedroom with en-suite is a popular choice, particularly if your home smaller than your neighbours properties.
If you have any unused rooms such as a basement, you could also spend money doing the room up to make it into additional living space too increase your house price. Any additional rooms will add value and make the property more marketable.
Storage space is also something to think about, as homes with plenty of storage space tend to be worth more than those with very little. Take a look around and see if there is anywhere that could be potentially changed into a neat and tidy storage area.
Finally, don’t forget to replace or repair any damaged fixtures or fittings, rotting window frames, old boilers or leaky radiators, you can build the grandest extension you like and still be fatally sabotaged by peeling paintwork or cracked tiles, making all the effort and expense a waste of time.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.