Improve Your Home and Its Value

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home improvement

Instead of paying interest at a higher overdraft or loan rate you may be able to cut your borrowing costs by paying interest at the much lower mortgage interest rates. All you need is the salary to support a larger loan and enough equity-your increased mortgage must be at least 5 per cent less than the value of your property. By remortgaging to a lower rate you may even be able to borrow more but pay less each month than for your existing mortgage. But remember to check that any planned home improvements will also add to the value of your home.

Do you need more space-but you can’t afford to move ? Have you dreamt of a new designer kitchen-but don’t have the cash to buy it ? Or is your boiler on the blink-but a new central heating system is just too expensive ? The remortgaging could be your solution. Hals of us improve our homes every year, spending some $30 billion in the process. If you don’t have the cash saved up, borrowing to finance work on your home can be expensive-increasing the size of your mortgage may be a less expensive option.

Instead of paying interest at a higher overdraft or loan rate you may be able to cut your borrowing costs by paying interest at the much lower mortgage interest rates. All you need is the salary to support a larger loan and enough equity-your increased mortgage must be at least 5 per cent less than the value of your property. By remortgaging to a lower rate you may even be able to borrow more but pay less each month than for your existing mortgage. But remember to check that any planned home improvements will also add to the value of your home.

The most popular home improvements are double glazing followed by garden work, a new fitted kitchen, new bathroom and then central heating. All of these may add to the value of your home provided you pay for good-quality workmanship and get guarantees where appropriates.

Be wary of spending too much on any work. Every property has a maximum value-find out from a local estate agent what a similar house in your street would be worth with every possible extra and then deduct the price of your home.

Spending too much is called over-improving. A $15.000 fitted kitchen in a $40.000 home is unlikely to add a similar amount to the overall value. So keep improvements in line with the property.

Make sure that necessary repairs are undertaken before cosmetic improvements. Essentials such as plumbing, damp course, woodwork, wiring and central heating should be dealt with first.

Opt for improvements that are in keeping with the rest of your property-extensions should look like they are part of the home.

Properties are often valued on the number of rooms, so avoid knocking down walls if it means fewer bedrooms, and fir double-doors between living rooms rater that making a through-lounge.

Power showers, off-street parking, central heating, a conservatory, garage and loft conversions are good investments. However, avoid swimming pools, gold taps, carports and lurid coloured bathroom suites-these could all reduce value of your home.

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