![Interactive Investor home page [Logo]](http://www.iii.co.uk/icons/logos/uk_logo.gif){kind=icon}
Profit the DIY way
24.01.05
Loans are one of the most popular ways to finance home renovations, but over the long term they can end up costing you dear, so make sure your DIY adds enough value to make it worthwhile.
In recent months the number of planning applications have gone through the roof. Uncertainty in the housing market means people are turning to DIY to improve their current home rather than moving to a new one.
But such renovation doesn't come cheap. Most homeowners spend between £5,000 and £7,000 doing up their their house, and a quarter of us borrow to finance the work. But if you're going to take a personal loan you need to be careful. Lawrence Gold, an IFA with Eden Park Associates says: "I don''t like personal loans for these projects unless they're going to drastically improve the value of your home, because they can be expensive - especially if you're borrowing for more than three years.
So before you think about getting a loan it's worth identifying those changes that will add value to your home and those that won't. We review the top 10 home improvements as surveyed by Barclays Bank.
1 Central heating
Costing up to £6,000 to install, this is an expensive upheaval, but can easily make the difference between a sale and no sale. Options for heating systems include oil-fired, gas and electric. The cheapest to run is gas and the most expensive is electric, though this could change with the advent of renewable sources such as solar and wind farms. Oil systems can be expensive to run and require the biggest, heaviest boilers and a large storage tank of between 200 and 3,000 litres.
Value factor: 10/10
2 Kitchens and bathrooms
Go for the best you can afford, but don't splash out unnecessarily. Regrouting is a lot cheaper than retiling and gives a similar lift, and tile paint can cover the excesses of the 1970s. Kitchen cupboards are usually a standard size, so it may be possible to fit new doors onto existing units.
Value factor: 7.5/10
Go for the best you can afford, but don't splash out unnecessarily. Regrouting is a lot cheaper than retiling and gives a similar lift, and tile paint can cover the excesses of the 1970s. Kitchen cupboards are usually a standard size, so it may be possible to fit new doors onto existing units.
Value factor: 7.5/10
3 Insulation
It might seem like a long-term investment which only makes sense if you're staying in your house rather than selling it, but lagging the loft to the regulation six inches is worthwhile, and if the market slowdown means you have to spend an extra winter in the house, at least your fuel bills will be lower.
Value factor: 7/10
It might seem like a long-term investment which only makes sense if you're staying in your house rather than selling it, but lagging the loft to the regulation six inches is worthwhile, and if the market slowdown means you have to spend an extra winter in the house, at least your fuel bills will be lower.
Value factor: 7/10
4 Loft conversion
This involves strengthening the floor and cutting holes in the building, so it's only worthwhile if done well. If you don't have a passion and a clear vision for the project, get the planning permission and some quotes, clean out the loft and then sell the idea of a conversion. If you go ahead, use a specialist builder.
Value factor: 7/10
This involves strengthening the floor and cutting holes in the building, so it's only worthwhile if done well. If you don't have a passion and a clear vision for the project, get the planning permission and some quotes, clean out the loft and then sell the idea of a conversion. If you go ahead, use a specialist builder.
Value factor: 7/10
5 Building a garage
Particularly in crowded cities, this is a great way to add value to your home, though ironically so is converting an existing garage into a habitable room, which is relatively cheap and straightforward. It's only advisable if you have a driveway to park on.
Value factor: 7/10
6 Creating a study
Eight out of 10 households have a home computer, so a study can be a selling point. Ideally, dedicate a small room to it, though cupboards under the stairs can sometimes be opened up sufficiently to contain a desk.
Value factor: 7/10
Particularly in crowded cities, this is a great way to add value to your home, though ironically so is converting an existing garage into a habitable room, which is relatively cheap and straightforward. It's only advisable if you have a driveway to park on.
Value factor: 7/10
6 Creating a study
Eight out of 10 households have a home computer, so a study can be a selling point. Ideally, dedicate a small room to it, though cupboards under the stairs can sometimes be opened up sufficiently to contain a desk.
Value factor: 7/10
7 Exteriors
Keep your front yard tidy. Walking past overflowing bins will turn off buyers. Guttering that is less than perfect is instantly noticeable, but usually cheap and easy to put right. Cracked or faded plastic ducting should be replaced, peeling paint should be addressed, and broken gates mended.
Value factor: 6/10
Keep your front yard tidy. Walking past overflowing bins will turn off buyers. Guttering that is less than perfect is instantly noticeable, but usually cheap and easy to put right. Cracked or faded plastic ducting should be replaced, peeling paint should be addressed, and broken gates mended.
Value factor: 6/10
8 Decorating
Keep walls neutral, perhaps decorated sparsely with photographs from holiday destinations. But don't be sloppy with your paintwork, and make sure that your home insurance covers DIY accidents, as 40% of us admit to having spilled paint on the carpet.
Value factor: 6/10
Keep walls neutral, perhaps decorated sparsely with photographs from holiday destinations. But don't be sloppy with your paintwork, and make sure that your home insurance covers DIY accidents, as 40% of us admit to having spilled paint on the carpet.
Value factor: 6/10
9 New windows and doors
This is a professional job. Windows make very ugly holes when they are taken out, which can daunt even a determined DIYer, and doors which seem easy to hang can very quickly turn into waste material by misguided planing.
Value factor: 5/10
10 Swimming pools
If you have the space in your garden, a heated swimming pool can be a good investment. Prices have come down and solar technology means that you can offer an attractive self-sufficient package, though the installation costs may still be daunting.
Value factor: 4/10
This is a professional job. Windows make very ugly holes when they are taken out, which can daunt even a determined DIYer, and doors which seem easy to hang can very quickly turn into waste material by misguided planing.
Value factor: 5/10
10 Swimming pools
If you have the space in your garden, a heated swimming pool can be a good investment. Prices have come down and solar technology means that you can offer an attractive self-sufficient package, though the installation costs may still be daunting.
Value factor: 4/10
digg
del.icio.us
furl
technorati
reddit