This time of year most of us have a little extra money. Instead of spending it all on consumables, why not wisely invest in your home. Now is a great time to consider a home renovation project if you own your own home. What’s great about home improvement is that you get the benefit of the renovation plus the potential increase in home equity.
Improving your kitchen or bathroom can generate a return on investment of between 60-80%. If, for example, you spend R20 000 on your kitchen renovations, this could increase the total value of your home by up to R36 000. How much you spend on your bathroom or kitchen depends on what fixtures, fittings, surfaces and accessories you choose and how much labour is involved.
Now, not all renovations are created equal, so don’t think that you’ll get back every cent you put in. Adding a bedroom or a bathroom will increase the value of your home nearly as much as it costs to add it, putting in a Jacuzzi room isn’t as valuable.
There are many ways to spend your fantastic bonus on home improvement, but wait. Don’t spend it in haste. Take the time to consider all your options.
1. Make a list of what needs to be done in the house.
- Do you need a new washing machine? Is your roof leaking? Do you need plumbing work done?
2. Make a list of wants
- Would you like some new furniture? Do your walls need a coat of paint? Could your garden do with some sprucing up?
3. Make a final decision.
- Based on your list and how much money you have to spend, make a decision. Whatever you decide on, enjoy it. Remember, you earned it!
Be sure to take labour into consideration. Many builders and contractors take a break over the festive season and rush to get jobs finished. Discuss this with your contractor and have a contract drawn up if necessary. If you would prefer that your job is not rushed, consider starting it in the New Year. Also, don’t forget to take labour costs into consideration when doing your budget.
Don’t Move Improve
The current economic climate has had an effect on the housing market, making it even more difficult for you to buy your dream house. The best solution is to make the most of your current home and if you successfully improve it, your renovation will add considerable value to your investment. Then in time, when it becomes a seller’s market, you will make a sizable profit or you may even find that your improvements have turned it into your dream home after all.
Holiday renovation tip: A fresh coat of paint can do wonders. Depending on budget start with the interior and then move on to the exterior. Interior paint is more affordable and can be done yourself.
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