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
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    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