How you could add £35,000 to your house or property investment

Before making a real estate investment, whether as an owner or an investor, knowing the potential prospects for capital appreciation can make all the difference.

Homebuyers, landlords and real estate investors all have an interest in knowing how much a property’s value might increase in the years to come. UK property prices continue to climb, although many experts expect this to slow slightly in the coming years as the effects of the pandemic ‘frenzy’ wear off.

But housing demand remains high, while a shortage of inventory remains a barrier for many buyers, as noted by the latest survey released by Rics. A real estate investment that offers more, however, will always get the most interest and, therefore, the best price when it comes time to sell.

There have always been certain things that add value to any real estate investment; have a garden, be close to transport links, have curb appeal. However, people’s needs and wants are changing, and this has been accelerated by the pandemic, as well as growing environmental awareness around the world.

Technology related to our homes is a really booming market, and is likely to become more than a “nice to have” in the future. Therefore, it makes sense that a property that offers additional extras would get the higher price.

Get the most out of your real estate investment

Research by a collaboration between Electrical Direct, electrician Jamie Heard and We Buy Any House property expert Bruna Pani has revealed a list of ways to significantly add value to a home. They also attached an estimate of how much extra people might be willing to pay, as well as the initial cost.

Unsurprisingly, owning a real estate investment with an electric car charging station is now the main added value of any home. Three-quarters of a million people currently own electric or hybrid vehicles, and that number is growing exponentially.

The team believe that with an average installation cost of £800, a charging station could add up to £35,000 to the value of a home. That means an impressive payout of £34,200. For anyone hesitant to install a charging station or opt for an accessible or nearby property investment, this could be the decision maker.

Bruna says, “If you’re looking to sell your property, investing in an electric car charging station in the driveway of your home could spark interest, as it demonstrates to buyers that the site is environmentally friendly and well maintained. equipped for the future.

“Having to continually charge electric cars can be seen as a downside to owning one, especially since it can take a while, so having the luxury of having your own charging station at home is really appealing.”

Tech upgrades pay off for investors

Next on the list, and a very close competitor, is adding solar panels to a property. Although it comes at a much higher cost, averaging £6,000, it can also attract an additional £30,000 when it comes to selling. This is a £24,000 win, so certainly a valid option.

Of course, not all properties are suitable for this type of upgrade. For those where that’s not an option, investing in smart home technology is the next best thing. Although it’s been a buzzword for several years now, it’s still a huge selling point. With an approximate installation cost of £5,000, with gadgets such as thermostats, TVs, appliances and lighting all ‘smart tech ready’, it can net buyers an additional £16,000.

Bruna says: “Investing in a smart home is not only attractive because of its ‘cool factor’, but also because it offers an element of ease that appeals to all types of people, from those who are s interest in technology to those who need it support the management of a household.

“Additionally, smart homes are an attractive feature to have in your home as they create an energy-efficient environment, which lowers your bills by controlling your energy consumption.”

Simple small changes

The latest upgrades mentioned by the team that can increase the attractiveness and price of a property investment are smart security (costing around £500 and adding up to £11,000) and upgrading to LED lighting (costing around £150 and adding up to £8,000).

All the ideas offered by electrical experts not only increase the value of a property. For landlords offering houses for rent, they significantly increase the attractiveness for tenants. This will naturally attract a higher rental price, as tenants will be willing to pay more for the proposed improvements.

BuyAssociation offers a range of real estate investments, most of which are equipped with smart home technology options. Browse some of our opportunities here or contact us for more details.