The beauty about residential property is that it can serve both purposes - a home can be both a great place to live in, while simultaneously if you have purchased in a sound location and are clever with design, décor and maintenance, it can also escalate in value over time.
This is according to Carol Reynolds, Pam Golding Properties area principal for Durban Coastal, who says that the rule of thumb for a primary residence is that this property is first and foremost a home and secondly an investment. From a general living perspective, homes will be customised to suit your individual needs, but always be mindful of enhancing the features of your property in a way that could also boost its value.
New research by the loan comparison website, Money.co.uk reveals that giving your home a green refurbishment could add over R584 000 to the value of your property.
“With people being more conscious than ever of our impact on the environment, Money.co.uk surveyed 2 000 potential home buyers to reveal how much extra money they think different eco-improvements add to the value of a property,” says Salman Haqqi, Personal Finance Editor.
The research found that potential home buyers would be willing to pay R584 041 more for a home that has 10 (very simple) eco-features, than a home without these ten eco-upgrades.
The research compared how much the environmentally-friendly improvements would actually cost a homeowner (average actual cost) against how much value potential home buyers believe they add to a home (perceived value), thus revealing a potential 'added value' amount for each of the home eco-features.
Eco-improvements home buyers value the most
Draft proofing is a quick and easy fix that allows you to block areas that let in cold air (or lose warm air) so you can use less energy to heat your home. It’s the improvement with the greatest added value, costing just R4 028 roughly to implement, but valued by potential home buyers as adding R64 607 to a property.
Thermostat installation is second on the list, costing R4 330 on average to install but with an added value figure of R56 188. Third, on the list is a smart metre installation which can be done in under an hour and costs just R1 007, and on average can potentially add R55 302 of value to your home.
The six cheapest eco-improvements to install in your home are:
1. Energy Metre Installation (R1 007 average installation cost)
2. Low-VOC Paint (R1 933 average installation cost)
3. Energy-Saving Lightbulbs (R3 524 average installation cost)
4. Draft Proofing (R4 028 average installation cost)
5. Thermostat Installation (R4 330 average installation cost)
6. Energy Star Ceiling Fans (R6 042 average installation cost)
The total added value of these six eco-improvements comes to nearly R337 000, a healthy return when the actual average cost of installing them comes to just over R21 000.
Money.co.uk’s report also revealed the eco-home improvements that cost more than potential home buyers value them at, with the research revealing that geothermal heat pumps add the least amount of money to your property. Despite an average installation cost of R261 811, the study participants only valued a geothermal heat pump as adding R81 383 to a property, making it the least lucrative green home upgrade on the list.
Biomass boilers (which combust sustainably sourced wood pellets instead of gas or oil) are the second-worst eco-upgrade when it comes to adding value to your home; they could potentially lose homeowners R-91 614, with their actual installation cost being around R161 115 but potential homeowners only valuing them at under half that price.
Green roof (the latest environmental trend to sweep across major cities' skylines) is fourth on the list, followed by triple-glazed windows.
Source: https://www.property24.com/articles/increase-your-homes-value-by-r500k-and-with-these-easy-eco-upgrades/30694?SourceFeed=News24&utm_source=news24.com&utm_medium=referral&utm_campaign=news24-article
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