There are a range of property improvements and renovations that can help add significant value to a property, and unsurprisingly, many of the top ways to do this involve increasing or maximising space. Adding an extra bedroom, especially if it has an ensuite bathroom, can add a considerable amount to the value of a property.
Converting a loft has been found to be the most lucrative property improvement, which adds an average of £11,020 to a property price, according to research from Halifax. This is even though the average cost of this type of work comes to £22,200.
The second most profitable property improvement is adding plants or vegetation to the roof as more people are going green. This adds an average of £8,676 to a property. Other top lucrative property improvements include bi-folding doors with the potential to add £5,256 to a property’s value, garage conversions with £4,847 and renovating period features with £4,731.
Do your research
If you’re flipping a property or wanting to add value to a property, it’s important to research the local market to help you figure out what features will likely add value to a specific type of property. With any improvements that may need planning permission, such as a loft or garage conversion, check with the local authority and keep in mind that submitting a planning application takes time and money.
When trying to incorporate profitable improvements to your property, take time consider if there are areas of improvement that will add enough value to the property and increase the market value of the home that will more than cover the cost of the work.
Russell Galley, managing director at Halifax, commented: “Loft conversions and green features can generate attractive potential returns, yet traditional factors including location, local property price, access to schools and transport will continue to have a big influence on house prices. That’s why it’s important to do your research if you’re looking to sell as you can get a better sense of the most attractive improvements by understanding your local markets.”
PropertyMenu’s deal calculator helps investors assess whether a property investment deal and the estimated cost of work they plan to do to a property is expected to be viable. With the deal calculator, you can pick your chosen exit strategy, including flipping the property, to help you decide if a property investment deal is the right investment for you.