Buying a home is a long term investment that tends to increase in value no matter what you do to it, but sometimes the right renovations, changes or circumstances can truly bring back great returns on your investment and are enjoyable in the process. Here are the top 5 things that affect your value in a positive way.
For obvious reasons, the location of your home definitely plays a huge factor in the value of your property and although we can’t change the location of your home, the location itself can change and we call it gentrification. Sometimes we invest in an affordable area that is “up and coming” so that we can ameliorate our home and hope that the neighbourhood does the same over time. When this does happen, the value of your home takes a huge leap upwards making it interesting to see that the right investments do truly pay off. An example of this is someone who bought a one bedroom condo Griffintown (neighbourhood of Montreal) in the early days of development around $175,000 can now sell that same condo, although one of the older properties in the neighbourhood around $375,0000 (after 11 years) without investing any money into it. Gentrification is one of the best ways to increase the value of your property as increases in demand can make things move much faster than anything else.
2. Aesthetic Renovations
As obvious as it may seem, Aesthetic renovations such as kitchen, bathroom and sometimes a simple paint job can increase the value of your home substantially and even bring return on investments such as 100-150% of the cost. The best part? you get the chance as an owner to enjoy the renovations in the short term Bringing your home up to date is a sure way to increase its value, make it more appealing to potential buyers and edge your way above the competition.
3. Important Renovations
Although much less enjoyable than aesthetic renovations, important or structural renovations such as windows, doors, roof, foundation repairs, etc are definitely ways to maintain the value of the home and raise its value depending on the neighbouring homes. When your home is the most well maintained of the neighbourhood, it gives you a competitive edge over your neighbours and in turn raises the value of your home in comparison to others. Buyers don’t want to purchase a home with structural or important renovations, so if everything is taken care of in advance (and done right) it is much better.
4.Natural Light & Good Room Divisions
Combining these two aspects made the most sense for me while writing this article because simply put, they do go hand in hand. A well lit home that has proper divisions will definitely be worth more than a home with a close concept layout and that is lacking natural light. As brokers we see the choices our clients want to make when purchasing a home and the lack of natural light and open concept floor plan is ALMOST always a deal breaker for young and older buyers alike.
5. Curb Appeal
Although impossible to quantify it, curb appeal definitely raises the value of your home. This does not necessarily mean more expensive finishing at the front of your home such as pavers or fountains, but it does mean a good regular maintenance, clean driveway, and a healthy lawn. Showing that you care about your home and that you are willing to maintain it on a weekly/daily basis shows that you are an owner that cares about your property and wants to have it properly maintained.
These five aspects are not the only things that can raise the value of your home, but are definitely some of the main reasons why the same home can be worth more in different areas with different finishes or divisions. If you are thinking of selling and want to know what you can do to increase the value of your home, give us a call and we can discuss it at any time.