If you’re looking to invest in something, you might want to consider investing in your home. Your property is your biggest asset and it’s profit potential is huge. While carrying out improvements doesn’t always guarantee a return, there are some upgrades which can add thousands of pounds onto the value of the home.
Here, you’ll discover why home improvements are the best investment there is.
The investment benefits of home improvements
Home improvements, when done correctly, have the potential to add on thousands of pounds onto the property’s value. What’s more impressive, is that it’s often the smaller jobs which yield the biggest returns. So, you don’t have to spend a fortune to reap the benefits.
If you want to focus on just one room at a time, the kitchen is often a great place to start. Kitchen renovations generally add a lot of profit onto the home’s value. It’s estimated a house worth £100,000 could add approximately 10% onto its value if it has a good kitchen.
There’s also the opportunity to take out an equity release later on. If you’ve added value onto the property via home improvements, this means you’ll get a larger equity lump sum if you need it.
How does it compare to other investments?
Compared to other types of investments, home improvements are safer and more affordable. They’re not complex like stocks and shares. So, you won’t need to do as much research before making your investment.
Improving your home is also a lot more enjoyable than investing in something like stocks and shares. You can actually enjoy the improvements you make before you benefit financially from selling it.
So, compared to other investments, home improvements are definitely more beneficial, safer and far less stressful too.
Things to consider
Of course, there are a few potential downsides to consider. The main one is that home improvements require a lot of money upfront before you can see a return. However, you could always use a personal loan from a provider such as Ocean Finance, which can make it much more affordable.
You’ll also need to be careful who you hire to undertake the improvements. There’s a lot of cowboy builders out there which could end up costing you a lot more than you bargained for. Always make sure you’re hiring a reliable, professional builder to carry out the improvements.
Overall, home improvements can be a fantastic investment. The above are just some of the benefits you can expect to enjoy compared to other investments.