Prop­erty up­grades mean good re­turns

Business Day - Home Front - - HOMEFRONT -

RE­MOD­EL­ING If there was any doubt about the mat­ter, a US study shows that well con­ceived home im­prove­ments do en­hance val­ues and saleabil­ity. 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 SA prop­erty group. The find­ings are some­what un­ex­pected 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. 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 own­ers, pro­vided they are will­ing to change their mind­set on the mat­ter.” The find­ings of the sur­vey, the 2009 Re­mod­elling costs vs Value Re­port, con­ducted by the Re­al­tor Mag­a­zine in the US, show that small scale re-mod­els are the most profitable on re-sale. “The study refers to sim­ple changes like cer­tain types of door re­place­ments, wood deck ad­di­tions, at­tic bed­room ad­di­tions, etc. But sur­pris­ingly home of­fice re­mod­els and sun room ad­di­tions showed the least re­turn, al­though that may dif­fer in SA where there is em­pha­sis on a Small Of­fice Home Of­fices and indoor/out­door liv­ing.

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