Building an extension or renewing your kitchen has long been seen as an excellent way of adding to the value of your house, however the recent fall in house prices mean that investing in home improvements no longer makes financial sense.
The rise in house prices over recent years saw many home owners making a profit from home improvements as they added more value to the property than they cost.
Extensions, conservatories, loft conversions and renewed kitchens, if properly designed implemented, could all make a profit for the home owner as house prices soared.
With the fall in property prices that we are currently experiencing, however, home improvements are no longer profitable for the home owner.
As research from the Abbey has shown, the cost of an extension or conservatory is likely to cost more than it adds to the value of your home. As a result, many estate agents are advising home owners not to undertake home improvements to boost property values.
Making your home more attractive to buyers by giving it a lick of paint and ensuring that it is clean and tidy for viewings, will give you a better return and may make your house stand out from all the other competition on the market.
Of course, home improvements are not just about increasing the sale value of your home, they also make your home more suitable for you and your family.
As it can cost around £20,000 to move home, taking into account estate agent fees and stamp duty, as well as the stress of selling and buying property in difficult market conditions, investing this sum in your current home so that you don’t have to move, may be sensible.
The message is though, that home improvements are no longer the profitable enterprise that they were, so unless they directly benefit your enjoyment of your home, it may be sensible to think again about that conservatory or new kitchen.
If house prices do eventually start rising again, surely the investment in the home improvement will then start to take effect?