Whether you are renovating your house to create more space, rejuvenate or to put it in the market, getting to grips with how renovations impact the sale price will help you make an informed decision.
Dr Simphiwe Madikizela, Head of Retail Sales and Special Projects at FNB Housing Finance, says many consumers mistakenly assume that when you invest in renovations, the money spent will be regained when selling the house.
“However, not all renovations you make will necessarily increase the value of the house. For example, adding an expensive swimming pool can often be a disadvantage due to the required maintenance. As a result, some potential buyers may not be willing to pay more for it and would have preferred to have the extra space instead,” said Madikizela.
Madikizela shared a list of renovations that can potentially increase the value of a house in lower to middle income neighbourhood:
“Also be careful not to over-invest in renovations that may result in your house being overpriced, compared to other properties in your neighbourhood. You may find it difficult to attract buyers, and eventually have to sell at a loss,” Madikizela said.
“Lastly, don’t try and cut costs by hiring unqualified renovators. Poor workmanship will cost you more in the long-run and may require the job to be done all over again,” he said.
Original article from: BusinessTech