select
|

Property upgrades do show good returns

If there was any doubt about the matter, a US study shows that well conceived home improvements do generally enhance values and saleability.
 
Indeed as the property market continues to gain traction and homeowners minds turn towards selling, their chances of success are clearly increased by well considered upgrades says Gerhard Kotzé, CEO of the ERA South Africa  property group.
 
The findings are somewhat unexpected in one sense however in that they point both towards doing the obvious, such as changing bathroom layouts or adding a new family room, but also to the value flowing from small external improvements, he says.
 
“Interestingly it’s those small external improvements to improve the ‘kerb appeal’ of a home that are often overlooked in favour of more expensive internal changes and therein lies opportunity for homeowners, provided they are willing to change their mindset on the matter.”
 
“Also, the findings of the survey “the 2009 Remodelling costs vs Value Report” conducted by the Realtor Magazine in the US, actually show that the small scale re-models are the most profitable on re-sale.
 
“The study refers to the likes of simple changes like certain types of door replacements, wood deck additions, attic bedroom additions, a minor kitchen re-model, window replacements, etc.
 
“But surprisingly home office remodels and sun room additions showed the least return, although that may differ in South Africa where there is so much emphasis on a Small Office Home Offices ( SOHO) and indoor/outdoor living.
 
“All the re-modelling done was priced at less than $14 000 (about R105 000 at ruling exchange rates), so your literally don’t have to mortgage the house in order to finance them.
 
“The investments added to the sales value of the properties concerned and although this may appear self evident, it’s comforting to know that the expectations can be realised aesthetically and financially. 
 
“No investment is totally foolproof of course and the provisos in South Africa are that you should not over-capitalise for your neighbourhood, that the changes blend well aesthetically and functionally with your existing property and that they are professionally carried out.
 
“Moreover, it’s also true that the return in a given area will not necessarily realise the same yield as that in another area for obvious reasons.
 
“Probably your best rule of thumb in the matter is the macro market of the area.”
 
 
Issued by ERA South Africa


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
        
    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