Property Downturn Biting? Why Not Upgrade?

October 5, 2009 in Property Investment by Alec

The economy is on a downturn and it affects the property market now more than ever. Interest rates are at an all time low but yet property prices are still stagnant Property owners are looking for ways to cash in on their investments fast but it can seem difficult to do in this climate.

One solution to this problem is to look into small scale development. A lot of property owners do this by just upgrading what they already have. They can build or extend a new bathroom or kitchen, the two main selling points of a house. A fresh extension and cost from £25,000 upwards, depending on where you are.

Another way to add value to your existing property is to extend the top floor into the roof space. This way, you can double the size of the living room or build an extra bedroom all for a small outlay. This is advisable in areas that have high value properties since the residential floor space is at the premium. An example of such area is London. Capital appreciation is at its finest for property owners in London. Just take a residential street of Chiswick, where many of the houses have already built their own loft. Not only does this increase the size of the house per square meter, it also increases the volume of the flat. With a start up cost of £25,000 for the loft creation, you can add up to £100,000 on its original value once the loft is added.

The cost of building a loft differs from one city to another. In London, building work is more expensive compared to the Northern parts of the country. If you want to have an idea on how much the building work will cost for your area, you might want to check out a Property Makeover Guide or speak with a few builders.. Know the size of the construction needed and the number of windows you want to put up in order to achieve a realistic estimate on the cost.

The main thing is to ensure that addition of any space to your property will have a positive effect on the property price of your house. Make sure that you research any project carefully and speak with local estate agents to get an idea of what value your property will be after adding any space. Then do a simple calculation to make sure that the amount of spend required warrants the extension against new value. You don’t want to be running getting a remortgage or a commercial mortgage tp spend money on adding space if there is no benefit of increase in value,

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