Home improvement and ROI isn’t as easy to understand as it appears to be, especially for those who are buying to live rather than to let. A poor ROI on a new bathroom may be excusable if it provides the homeowner with some added comfort and convenience in the interim, but for investors and developers than the only thing to take into consideration is the bottom line.
Selling prices and rental prices can be significantly boosted by the right investments, but some home improvement projects can do nothing to alter the income of the property. So before you take advantage of the lucrative international housing market and begin to research the cost of improving the property for sale in Sharm el Sheikh, read on to find out the expected ROI on some popular projects.
Added Space
Adding extra floor space or living space to a home will, understandably, boost its potential income. Whether this is converting an unused loft into an extra attic bedroom, adding a conservatory or extending the kitchen; affording more space to your tenants or buyers will certainly add value to rental and sales income.
Figures show that a number of young adults are finding themselves forced back to their parents’ homes in light of rising rent prices and lowering employment prospects; meaning that attic bedrooms are becoming a more frequent investment for all demographics. Adding an extra bedroom onto a house can attract young or prospective families with this statistic in mind. For student properties, an added bedroom means an added tenant and added rent.
Swimming Pool
Swimming pools are one of the most debated home improvement projects when it comes to ROI. Whilst they certainly hold more allure as improvements on property for sale in Egypt, Spain or Portugal; their prospects in the domestic market can be far less promising. The climate will largely dictate the ROI of a swimming pool, installing one in the suburbs of London will struggle to compete with the prices of those installed on property for sale in Sharm el Sheikh.
A tendency to underestimate the associated costs with swimming pools, coupled with the high pay out to have them initially installed; combine to make swimming pools a less than wise home improvement projects. The social and recreational value cannot be debated, but the financial value certainly can.
Kitchen Remodelling
Studies show that kitchens play a significant part in the decision making process of tenants and buyers, holding significant emotional value as the ‘engine room’ of a property. As such, minor aesthetic adjustments can help change the listing of kitchens on estate agent documents from ‘modest kitchen’ to ‘modern kitchen’ or ‘well equipped kitchen’ and draw viewers through the door. ROI on kitchen remodelling can be as high as 70% on the original outlay.
Author Bio: This article was written by Mark Burns, owner of property specialists Offplan World, who provide investors with offplan property investment opportunities all around the world.