Is there a ration to money spent on improvements to aproximate added value ie £3k on a kitchen would give a £5k divid...
Is there a ration to money spent on improvements to aproximate added value ie £3k on a kitchen would give a £5k dividend etc?
Asked on Sep 9 2008,
Home Improvement in Ilford |
I dont think this will answer your question, but it is good to know! If you are property developing or are trying to add value to a property you should be aiming to make a 20% profit. Any less than this and it is not worth it. For example £10k spent, you should be aiming to increase the value by £12k - a profit of £2k or 20%. Im not sure however if there is a set formula for working out how much (say) a conservatory would add to the value of your home. You could have a look on the internet at houses that are in the same street near where you live that are of a similar tenure e.g. a 3 bed semi. Then try and find one that is the same but has a conservatory added on or a new kitchen and bathroom and see what the difference in price is. I know it's a bit long winded but worth a try!
Answered on Jan 14 2009,
What you should look at is this..
Eg. An added extension to a house will increase square fottage to the house..
you should aim to spend the minimum amount of money for the works. Get builders in to do the foundation, walls, roof, insulation, plumbing and then try to do as much of the work yourself as possible.
Only take on as much as you know you can do for sure.. don't assume you might be able to do something.. be SURE!
this will add value.. you spend 12-15k on shell and then you spend another 3-4k on fixtures and your time.
You want the house to have an added value of 22-27k because of this. If it doesn't seem likely then don't do that. The more you spend the bigger your risk and the more you should expect back.
I would say more than anything else though.. think about what will make your house valuable to a prespective buyer like having an extra bathroom.. colours/paint/ carpet etc are cosmetic and can be easily/quickly changed.
One other thing to remember.. if you do some upgrades to your house but know it might not up the value too much you still might want to consider it, specially if you know that when it comes to selling the house that upgrade is more likely to tip the balance in your favour when people copmpare with similar houses on the market. if a house takes too long to sell and you end up paying the mortgage from you pocket for some reason you will lose a lot of money every month.
Answered on Mar 19 2009,
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