Which property improvements give the best return?
The most profitable projects for homeowners seeking to increase the value of their property is installing a boiler, according to GoCompare Insurance.
The price comparison site said that the cost of a new boiler is on average £1,995, but it can add over £9k to the value of your home.
The next most profitable project is installing central heating, which comes in at a cost of £4,250 but, again, can boost the value of your home by over £9k.
In third place a garden makeover, costing around £1,500, could see the value of your home increase by £2,256.
Not all home improvement projects are going to boost the value of your home though, according to the research.
While redecorating, laying new flooring or updating a bathroom may slightly increase the value of a property, the costs of doing so generally outweigh any potential profit.
And if you are tempted to install solar panels it’s worth doing the maths first. They cost an average £5k, but can detract from your home’s value by over £4K, meaning a net loss over over £9K (although of course you will save on your energy bills).
GoCompare has launched an online calculator to show the home improvements which add value to a property and those which could end up leaving you short changed. The ‘Property Investment Calculator’, was created with the assistance of property expert Henry Pryor, and gives homeowners an indication of average costs for renovations together with an estimate on the added value and potential profit from undertaking the work.
Pryor said, “It’s therefore essential that you think carefully why you are spending extra money and who will benefit. My advice is usually spend money on the things that you want and leave other improvements to the next person who may not share your taste.”