Designer Felix Guyon shares a penthouse in a 25-storey building on Nuns’ Island in Montreal, with a stunning view of the Saint Lawrence River. How can you increase the value of your home or investment property regardless of what is happening to the market as a whole? The answer could well be to try a little KISS-ing. The KISS principle – Keep It Simple, Silly – reminds us that, more often than not, the most obvious ways to turn a profit are also the most lucrative. In this instance, what we are talking about is increasing the value of your property by making home improvements. Something as simple as upgrading your heating system or adding an extra bathroom could see you tens of thousands of euros richer.
A quarter of British homeowners looking to improve their homes this summer are choosing to renovate their kitchen and seeing a 51% return on investment as a result. Is this something you’re thinking about? If so, check out our guide to planning your kitchen remodel and these practical kitchen renovation tips from award-winning home improvement blogger, Kimberly Duran.
In the hottest housing markets, springing for a kitchen or bath remodel is a sure-fire investment, often returning more than 100 percent of the cost. In Baltimore, for instance, a $9,400 bathroom remodel recouped 182 percent of its cost at resale, according to Remodeling’s 2004 study. The markets in Washington, D.C., Minneapolis, Chicago, Atlanta, San Francisco and San Diego also offered triple-digit returns on a bathroom remodel. Minor kitchen remodels (average cost: $15,273) also provided returns of more than 100 percent in cities including Providence, R.I., Miami, New Orleans and, of course, San Diego, where a $17,928 investment netted $27,000 on resale.
Zopa surveyed 1,550 UK homeowners who had recently taken out a home improvement loan. With either option, you’re pledging your home as collateral , meaning if you don’t make your payments, the lender will end up owning your house. Alternatively, you can take out an unsecured personal loan to avoid putting up your home as collateral. Another way to finance your home renovation is by taking out a home equity loan , also known as a second mortgage. This is a one-time loan, so it’s not subject to fluctuating interest rates, and monthly payments remain the same for the loan term.
You may also get money from your council to pay for the cost of moving and the inconvenience it causes. A home equity loan is a form of credit where your home is used as collateral to borrow money. It’s typically used to pay for major expenses (education, medical bills, and home repairs). However, if you cannot pay back the loan, the lender could foreclose on your home.