Skip to main content

What investment can get house better value

There are certain features that make houses more appealing to buyers. Go for these and enhance your house's value. They won't cost you a bomb either





   HAVE you ever wondered why there is a large variation in prices between two houses? Why an apartment is often considered a cut above the rest and also commands better value and rental returns?


   The location of your home and other factors like the floor that you are in are a given, but there are some features that make homes more appealing to buyers. These features are within your control and can be introduced by investing a small fraction of the house's value. Here are some tips:

CLEAN & SPACIOUS

This is one improvement that costs next to nothing. But a house that is spanking clean and is not cluttered with furniture or other household stuff gives an impression of space and warms the buyer to the property.

KITCHEN & BATHROOM

These two rooms are the ones where you can make investments that have immense utility value. According to experts, if you are not going for anything extravagant, you can expect a 200% return on the investment that your make in upgrading these two rooms.

ADDITIONAL BATHROOM

If you want to sell your house in the near future and have only one bathroom, then you may consider adding a second one. Homebuyers will want enough bathrooms to handle their family size. And you don't have to build an extension onto your house for this; simply use the space that isn't being used in your home. If you could add another room in the available space, there is nothing like that.

BUILT-UP SPACE

Today, a large component of the cost of the house is the cost of the land on which it is built. But buyers tend to focus on the cost per square feet of the built-up area. If you are having an independent house, you could look at creating more usable space. "Additional storage space, laundry space, multifunctional terraces are all great ideas to fetch better value and increase the total built-up area of the house.

CONTEMPORARY SOLUTIONS

Today's customers look for smart homes with innovative solutions, and anything short of their expectations won't be able to fetch a better price. Even if selling or renting is not your goal, then a thoughtfully-renovated house can always be your prized possession.

STRUCTURAL REPAIRS

With time, all buildings go through wear and tear and, therefore, there is a constant need for timely and proper upkeep. Similarly, reinvestment is sometimes required because of the need for upgradation. For instance, new materials are constantly being introduced in the market and replacing old finishes with better options may be the need for keeping up with the times.

WHITE ELEPHANTS

While makeovers definitely boost the value of your abode, there are certain changes that will not only cost you a bomb, but run the risk of putting off potential buyers.


   This can be the gardens, overspending on paints or wallpapers, extravagant kitchens, bathrooms and hot tubs, and swimming pools, among others. The taste of colour and the theme of designs may vary from person to person. Also, gardens and pools are a token of status symbol, but most buyers don't opt for any additional maintenance cost.


   Financial advisors, the world over, suggest to budget 1-2% of the home's purchase price per annum for home repairs and upkeep. In case of remodelling, the budget can go up to 10 to 15% of the home's value, depending on the location of the property. Anything beyond that should be for the sake of your own pleasure and comfort!

VALUE UPGRADE
   
DOS

PAY SPECIAL attention to kitchens and bathrooms

IF YOURS IS a single bathroom house, adding another one will increase appeal

SPREAD YOUR investment across the house

DO KEEP A check on time and cost overruns

ENSURE THAT renovations are in keeping with bye-laws of your local authority

DON'TS

DO NOT spend more than 1-2% of the value on repairs GET TO experimental and go for unusual colours & designs


DO NOT reduce the number of bedrooms DO NOT use wallpaper as it will look like a cover-up DO NOT make investment that are 'high maintenance'

 

Popular posts from this blog

How to Decide your asset allocation with Mutual Funds?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) How to Decide your asset allocation ? The funds that base their equity allocation on market valuation have given stable returns in the past. Pick these if you are a buy-and-forget investor. Small investors are often victims of greed and fear. When markets are rising, greed makes the small investor increase his exposure to stocks. And when stocks crash to low levels, fear makes him redeem his investments. But there are a few funds that avoid this risk by continuously changing the asset mix of their portfolios. Their allocation to equity is not based on the fund manager's outlook for the market, but on its valuations. Our top pick is the Franklin Templeton Dynamic PE Ratio Fund, a fund of funds that divides its corpus between two schemes from the same fund house-the...

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.

NFO Review: Edelweiss Select Midcap Fund

      Edelweiss Mutual Fund has announced the launch of another equity fund after a gap of nearly two years. This fund will be focused on mid cap stocks.   Investment Strategy The primary investment objective of the scheme is to generate long term capital appreciation from a portfolio predominantly comprising of equity and equity related securities of mid cap companies. The scheme may invest upto 100% in equity and equity related securities of companies falling in top 101 to 300 companies by market capitalization. However, it may also invest upto 20% in other listed companies as well as in debt and money market instruments.   Fund Manager Mr. Paul Parampreet and Mr. Nandik Mallik will co-manage the scheme. Mr. Paul Parampreet has done PGDM (IIM – Calcutta) and B.Tech (IIT-Kharagpur). With overall experience of 6 years, he has worked with Edelweiss Securities Ltd. SDG India Pvt. Ltd. ICICI Bank and BG India Pvt. Ltd. Mr. Nandik Malik has done MS-Finance (London Business Schoo...

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...

DSP BlackRock US Flexible Equity Fund - New DSP BlackRock Fund

  DSP BlackRock US Flexible Equity Fund is a feeder fund which will give Indian investors access to US equities by   predominantly investing in the BlackRock Global Funds–US Flexible Equity Fund (BGF - USFEF). BGF - USFEF invests at least 70% of its total assets in the equity securities of companies having economic activity in the US.BGF - USFEF normally invests in securities that, in the opinion of the Investment Adviser, exhibit either growth or value investment characteristics, placing an emphasis as the market outlook warrants. BGF – USFEF's investment strategy is based on the belief that incorporating growth/momentum and valuation factors with disciplined security selection and portfolio construction will provide consistent and repeatable investment success.   Why should one invest in this Scheme?   By investing in DSP BlackRock US Flexible*Equity Fund, investors can get access to: The world's largest country by GDP at USD 15.1 trillion^ ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now