select
|

Wait before you renovate

As has been reported by several estate agencies serving the Upper Constantia residential property market, a reluctance to sell is now increasingly evident among home owners in this area.

Among those who do put their homes up for sale, says Gerald Romanovsky, the senior sales agent at the Rawson Property Group’s Constantia franchise, he often comes across those who are contemplating selling after carrying out quite substantial renovations and improvements.

Their line of thought, says Romanovsky, is that by ‘improving’ what are often readily saleable properties they will add significantly to the profit that they make on the sale.

Typically, he said, an Upper Constantia home owner with, say, a home worth R7 million will carry out an upgrade at a cost of R500,000 and will then expect to sell the home for R8 million or even more.

“My experience of selling homes in the upper brackets,” says Romanovsky, “leads me to think that this line of thought is very seldom justified.  The innovations and extras installed to enhance the value of the home are likely in many cases not to be to the taste of the new buyer, who probably in any case has plans of his own for upgrading the home.

“My advice to profit seekers of this kind is, therefore, ‘don’t’.  Make your home look as spic and span as possible and then put it on the market at the price a trained estate agent with valuation experience recommends.  That way you will probably get the best possible sale result.”

On the other hand, says Romanovsky, if the owner upgrades and improves his home and then continues to live in it for four to five years, it is highly likely that the increased sale price that he will achieve will more than compensate for his earlier outlay on the upgrade.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK