Adding value to your home is very important. Making any improvements on the current state of your house will be good for its value. The value of a house matters a lot, whether it is newly built or it has been in existence for a century. Here are some of the reasons why adding value to your home is important.
It Is Profitable
When you add value to your home, you increase its market price. When you decide to sell it, you can make a good profit. You can also make money out of it through reverse mortgages. Homes with a good value have higher reverse mortgage rates. Adding value to your will see you make more money from this financial plan. With reverse mortgages, you will be allowed to live off the equity in your home while you receive monthly payments. As much as this option has many complexities to consider, it can be a good option, especially in your sunset years.
It Increases Your Credit Score
Adding value to your home will increase your credit score. It is counted as an asset, and assets with higher values mean you have a higher credit score. With an improved credit score, you can be able to access loans. Those with poor credit ratings are either denied loans or have access to extremely low amounts.
How You Can Increase Your Home Value
There are several ways you can increase your home value. Discussed below are some of them.
1. Convert Your Cellar
By transforming an existing cellar into a storage or living space, you can boost your home’s value by 30 per cent. However, you should ensure that the build cost per square foot is lower than the price per square foot of the location. Converting a cellar is one of the least complex renovations that rarely needs a professional. It helps create more living space that increases your home’s value. Executing it is simple; you don’t even need planning permission. However, if you are making changes to a listed property, you will have to get permission from a local planning officer.
If you don’t have a cellar, you can consider digging down to add square footage. Keep in mind that creating a new basement is a complicated process that needs an expert. It needs professional skills, from structural engineering and excavation to waterproofing. Look for a qualified team to work on your basement; this will significantly increase your home value.
2. Convert Your Garage
If you have a garage that isn’t being used to house a car, you should consider converting it into a living space. This will be ideal if you have a parking space elsewhere. Before starting the process, you should first check whether your garage is suitable for conversion. You should also check whether you will need planning permission. However, in most cases, a garage conversion is classified as permitted development, meaning you don’t need planning permission — you should check to be sure.
Creating more living space in the garage can increase your home value by 20 per cent. Homebuyers will always fancy homes with more living spaces, and you stand a good chance of making profits when you add more living space. Besides, converting your garage will introduce privacy to your household. Members of your family will move here, increasing privacy.
3. Loft Conversion to Add a Bedroom
By introducing a new bedroom to your house, you increase its value by over 30 per cent. You can do so by converting your loft. As much as most lofts can easily be converted, you will need a skilled architect to handle this process. This is because they are well informed on the different types of loft conversions available. The most expensive type is mansard conversion, which demands more materials. You can also opt for a roof light conversion, which typically needs minimal structural work. This is the most common type of loft conversion.
4. Extend Your Kitchen With Side-Return Extension
This is a narrow alley that runs adjacent to the kitchen. It is mostly found in semi-detached or terraced houses. By extending your kitchen into the side return, you create more living space. This will go a long way in increasing your home value. Research shows that a larger living space layout can increase your home value by up to 30 per cent.
Adding value to your home has long term benefits. You can make profits when you decide to sell it. Besides, a house with more value will generate more income with reverse mortgages. Therefore, it is a good idea to initiate a home renovation project that will see your home value go up.