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
Characters remaining

    Latest Property News
    • 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.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us