Financial services comparison site GoCompare has announced the creation of its property investment calculator.
Teaming up with property expert Henry Pryor, GoCompare’s calculator aims to show the home improvements which can add value to a property and those which could end up costing more than they’re worth.
According to the site, the most profitable home improvements include installing a new boiler or central heating, home security and energy saving. Meanwhile, renovations like updating bathrooms, kitchens and new flooring could result in a loss.
Users will be able to calculate the potential profit by inputting the current property value and selecting a project budget. They can also look forward to helpful tips within the calculator, which is fully embeddable.
Henry Pryor, property expert, commented: “Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store. Some will even consider doing some building work in the hope of adding value but not all buyers will be prepared to pay for your idea of improvements or good taste.”
“Some buyers would even prefer to be able to put their own mark on a property and install the bathroom or kitchen of their choosing and may even pay for the chance to be able to do so.”
He said because of this, it’s essential that homeowners think carefully about why they are spending extra money and who will benefit from these changes.
“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’.”
According to Pryor, getting planning permission to do the work is frequently the best investment you can make, leaving the choice of decoration, layout and equipment to the next owner. He explained that improving the green credentials of a home usually pays, but additions like solar panels will be hard to get an immediate payback on.
“The best investment homeowners can make is to buy a bucket, sponge and some cleaning materials,” he added. “There is always value in giving the right first impressions and letting buyers go away discussing the potential of the property rather than the rim around the bath can add pounds to your price.”
“Unless you really know the market and what people really want then you are better off making clear the potential in your property and letting their imagination do the rest. A clean, tidy property will always command more than a scruffy home that looks like a skip.”