How to increase your home value without breaking the bank

Building a swimming pool or installing solar panels or a borehole might increase the value of your home as much a fresh coat of paint, a pristine garden and additional floor space would. 

While house prices have increased marginally, but when adjusted for inflation, they are declining. Despite this, there are cost-effective ways for homeowners to add to the value of their property without having to dig deep into their pockets. 

Gavyn Letley from DirectAxis, a loan provider, said when seeking to add value to a residential property, homeowners should consider small, strategic upgrades that enhance the appeal of the house rather than costly renovations that may not pay off in the end.

“When it comes to adding value to your property, less is more. Have a plan, focus on upgrades rather than full overhauls, do it incrementally to spread the cost and prioritise the changes that will create the most appeal at the least cost.

Letley said it was important to set a budget first. If you have the skills, time and tools, the DIY route will save you labour costs. Once you know the costs, you can consider how best to finance the project, either from savings or a loan.

“First impressions matter. A freshly painted exterior, a well-kept garden and sparkling, clean windows can instantly make your home more inviting. The best part is that these improvements require more effort than money. Take a drive around the neighbourhood to see what makes other houses stand out,” he advised, adding that it's crucial to tackle one project at a time than leaving unfinished spaces.

Its also crucial to repair first before renovating as a brand-new kitchen won’t compensate for a leaking roof or broken gutters. Address maintenance issues first, to avoid costly problems down the line.

Standard Bank's head of home services Toni Anderson said when a buyer is investing in a new home, factors like the economy, generational trends and basic modern requirements play an important role. These should inform the enhancements you decide to make, to add value to your property.

She said adding extra floor space to the main house such as rooms, extending rooms, bathrooms and open plan living are popular improvements. An outdoor deck or a patio that extends the living area could add additional value including extra security improvements.

Kitchen renovations are also popular.

Other tips to consider:

• Don’t be extravagant: Focus on upgrades that appeal to a wide range of tastes. 
• Keep it simple: Major structural changes can be expensive and unnecessary.
• Prioritise cleanliness and upkeep: Do regular deep cleaning. 
• Avoid unpleasant surprises: Before listing your property, consider getting it inspected for electrical compliance, cracks in the walls or floors, rising damp, dry rot or pests.