GoCompare have launched a new tool that calculates which home improvements add value to your home and which could leave you short changed.
The insurance comparison website has teamed-up with property expert Henry Pryor to develop the property investment calculator. The calculator has been produced to give homeowners an indication of average costs for renovations, together with an estimate on the added value and potential profit from undertaking the work.
Research commissioned by GoCompare Home Insurance found that 26 per cent of home improvements are undertaken specifically to add value to a property with popular renovations including: interior redecoration (53 per cent); fitting a new kitchen (42 per cent); replacing flooring (38 per cent); installing a new bathroom (36 per cent); a garden makeover (36 per cent); installing new double glazing (29 per cent); installing new central heating or boiler (28 per cent).
Other works undertaken were: improving insulation (16 per cent); knocking through rooms to create an open-plan space (16 per cent); fitting solar panels (9 per cent) and adding a conservatory (8 per cent).
Commenting on the launch of the Property Investment Calculator, Henry Pryor says, 'Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store, some will even consider doing some building work in the hope of adding value but not all buyers will be prepared to pay for your idea of improvements or good taste. Some buyers would even prefer to be able to put their own mark on a property and install the bathroom or kitchen of their choosing and may even pay for the chance to be able to do so. It’s therefore essential that you think carefully about why you are spending extra money and who will benefit. My advice is usually to spend money on the things that you want and leave other improvements to the next person who may not share your taste.'
Ben Wilson, GoCompare’s home insurance spokesman says, 'Our new calculator gives homeowners an understanding of the typical costs and benefits of undertaking a range of projects, before they start the work, allowing them to see the potential financial benefits. Our calculator provides indicative valuations and estimates based on national data. Therefore, depending on local housing market and labour conditions, the extent of the work undertaken, and materials used, figures for individual projects will differ and we always recommend people shop around to get quotes for work as well.'
Intrigued about whether your future renovation plans are going to be worth the investment? Check out the calculator for yourself….