Home improvement: can it pay off?

Is improving your home worth it

We’re a nation of DIY lovers, aren’t we? Home improvement can be a double winner, as not only can it make your house into a home, it could also make it a more profitable asset for you.

And a lot of us think that now. An amazing 91% of homeowners think their house value has increased since they bought it, and by an average of £33,125, according to recent research from Co-op Insurance.

The research also showed that homeowners believe that renovation and decorative works they’ve carried out has led to an average £14,900 increase in property value.

But doing your homework before starting, working out exactly how you’re going to pay for the improvements, is important too.

How can I get home improvement funding?

If you need credit to top up your savings, then your best option is likely to be one that offers the cheapest overall cost of borrowing over a period of time, not just the cheapest initial monthly payment or APR.

Personal loan

One way to budget and plan with ease and convenience is to get a fixed rate loan. A loan (personal and unsecured) is usually at a fixed rate of interest over a fixed term – they typically tend to be up to £25,000 and last for up to 5 years.

Credit card

Using a 0% purchase credit card can help spread the cost of all the great things that turn a house into your home, and give you more flexible monthly payments. Don’t forget to pay the card’s minimum repayments and if you can, try to budget to pay off the balance within the life of the 0% deal to avoid ending up paying unnecessary interest.

Experian CreditMatcher can help you find credit cards and personal loans you’re more likely to be accepted for, and it won’t negatively impact your credit rating. And you can get your Experian Credit Score FREE forever. We are a credit broker not a lender, working with selected lenders.

How can home renovation increase my property’s value?

Many people now choose to do up their current home rather than moving house, due to economic uncertainty and the high cost of moving.

According to a 2016 survey from Compare The Market, the home improvement that added the most value was an extra bedroom, adding 8.8% (an average of £18,826), followed by loft conversion (7.10% at £15,189) and an extra bathroom (6.10% at £13,050).

However the most popular home improvement (other than all-round decorating) was to fit a new kitchen (67% of the 1000 surveyed), with a new bathroom and new windows close behind. Other top choices were fitting a new boiler and heating system, new external doors and re-carpeting the house.

Three quick tips to do home improvement:

  • Make a ‘shopping list’ of what you want (and what you don’t want to end up paying for)
  • Set a budget for your renovations and try not to go over it
  • Get at least three different quotes before comparing them before choosing one

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3 thoughts on “Home improvement: can it pay off?

  1. Caitlin

    This is a really interesting post, home improvements, whether they are big or small are sure to make a difference to house viewers. As you mentioned, kitchens and bathrooms are two of the most important rooms to make sure are in tip-top shape, it’s important they look good on the outside to grab viewers attention but also it’s important not to neglect the foundations of plumbing, people are much more likely to pay more for a house they know is secure with good plumbing infrastructure and drains so they don’t have to dish out heavy costs in the future.

    Reply

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