Although there are many improvements that can be made to residential properties which will add real value to the home in question, there are a number of home improvement projects that it is best to steer clear of if you are hoping to make a profit on the work that is carried out. Below are those that I believe offer the worst chance of making money.
- Converting a spare bedroom into an office. Whilst this type of improvement used to be all the rage not so long ago, technological advances and changes in the way that people work have rendered such projects largely redundant. Most of those who work from home use a laptop computer or other portable electronic device that enables them to work wherever they wish – in the garden, sitting in front of the TV or in a local cafe – so there is no need for them to buy a property with an office. Given the relatively high cost associated with remodelling a bedroom so that it resembles a conventional workspace, this is one home improvement idea that is best avoided nowadays.
- Replacing the roof. If a number of tiles have come off or the wooden joists that support your roof are rotting, it might be necessary to replace the whole thing in order to ensure that your property does not lose value owing to rain damage to the upper storey. However, if you are thinking of replacing the roof purely for aesthetic reasons it is probably best to think again because you are highly unlikely to recoup the cost involved when it comes to selling your home, let alone make a profit on the work that you pay to have done.
- Replacement windows. As with your roof, you may have very little choice in the matter when it comes to replacing your windows but if you are thinking of having them replaced in order to increase the market value of your home, you might like to reconsider your position. Surveys show that on average, homeowners recoup less than 85% of the cost when they replace the windows before selling their home.
- Remodelling your kitchen. Renovating the kitchen is one of the most popular home improvement projects undertaken by homeowners across the globe. Whilst there is no doubt that a bright new kitchen fitted with attractive storage units, a modern cooker, refrigerator and stove is a pleasure to prepare food in, you are unlikely to make a profit on remodelling work carried out in this room. On average, homeowners that renovate their kitchen will only increase the value of their property by about 80% of the cost involved.
- Loft and basement conversions. Another popular home improvement project among homeowners in the UK, USA and other developed countries that is unlikely to result in a profit. Although you might think that the extra room provided by a tasteful loft conversion is well worth the cost, home buyers seldom agree and usually include less than 80% of the cost in the price they are willing to pay for homes that have had such work done. If you are looking for easy ways to increase the value of your property without spending more than you will make, give loft and basement conversions a miss.
As you can see from the above list, many of the more popular home improvement projects are not a good choice for those that wish to make a profit from their renovation activities. Moneyvista financial planning service and other similar services that can be found online may be able to help you pinpoint projects that offer a better chance of making money than these ones.
About the Author:
Royal London is a company that provides the MoneyVista financial planning service, an online solution that helps users create and maintain their own personalised money management plan.
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Category: Home Renovation
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- 5 Home Improvements That Increase Property Value | May 6, 2013