3 Property renovations that don't add the value you think it does
Category Newsletter: Lead Article
When it comes to property renovations, not all upgrades are equal. And while most upgrades and renovations are done to suit the needs and preferences of the property's occupants, it remains important to consider the impact it will have on the eventual resale of the property.
Skoko Sebola, property expert and Principal of Leapfrog Midrand, says that it is generally expected that kitchen and bathroom upgrades add value to almost any property, while most other renovations are regarded more subjectively. "If you want to install a hot tub in your lounge, by all means, go for it, but do know that when it comes to putting the property on the market, it may well be something that deters, rather than attracts buyers.
Think twice - or three times! - about the three upgrades below. They typically don't get the popular vote.
A deep dive
Swimming pools cost a lot of money to install and a not-insignificant amount to maintain on a monthly basis. "Many buyers simply aren't interested in a swimming pool and say that the cost-to-use ratio just doesn't make sense," Sebola says.
That's not to say that if you really want a swimming pool, and know that you will get use out of it, you shouldn't go for it. But if it's merely a nice to have, or an aesthetic addition to the garden, it is worth reconsidering.
Swimming pools use a lot of water and electricity - resources that are, respectively, scarce and expensive - so do take that into account too.
Bedroom basics
While an extra bedroom is usually a welcome addition to a property, it depends on where the bedroom is in relation to the other rooms.
"A bedroom that can only be accessed through another bedroom is almost never a good idea. Bedrooms are private space and having to walk through one to get to the other can be very off putting for buyers," Sebola says. His advice is, as far as possible, to reconsider the renovation in a way that allows for the bedroom to be accessed independently.
Similarly, garages that have been converted into bedrooms also rarely add the value the homeowners initially hoped for.
Nicer than the neighbours
Unlike being the best dressed at a party, having the property that is significantly fancier or bigger than most in the neighbourhood generally struggles to fetch the price it would in a neighbourhood where it matches its peers more evenly.
"Market dynamics should never be overlooked. Buyers are generally wary of paying significantly more for a property than the average in the area," Sebola explains.
While all upgrades and renovations should serve the needs of the property's occupants first and foremost, it's helpful to consult a trusted property advisor for guidance on renovations that will ensure the best return in the long term.
Author: Leapfrog Property Group
