Before making any property investment, whether as a homeowner or an investor, knowing about any potential capital appreciation prospects can make all the difference.
Homebuyers, landlords and property investors all have an interest in how much a property’s value could increase by in the years to come. UK house prices are continuing to climb, although many experts expect this could slow down slightly in the coming years as the effects of the pandemic “frenzy” wane.
But demand for homes remains high, while a shortage of stock is still a barrier for many buyers, as has been noted in the most recent survey published by Rics. A property investment that offers more, though, will still get the keenest interest and, as a result, the best price when the time comes to sell.
There have always been certain things that add value to any property investment; having a garden, being close to transport links, having kerb appeal. People’s needs and wants are changing, though, and this has been accelerated by the pandemic, as well as a growing worldwide environmental consciousness.
The technology linked to our homes is a truly 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 some added extras will fetch the highest price tag.
Adding the most to your property investment
Research carried out by a collaboration of 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 have also attached an estimate of just how much more people might be willing to pay, as well as the cost at the outset.
Perhaps unsurprisingly, owning a property investment that has an electric car charging point is now the top value-adder to any home. Three quarters of a million people currently own electric or hybrid vehicles, and this number is rising exponentially.
The team believe that, with an average cost of installation of £800, a charging point could add up to £35,000 to a home’s value. This means an impressive £34,200 pay-off. For anyone on the fence about whether to install a charging point, or to opt for a property investment that has them accessible or nearby, this could be the decision-maker.
Bruna says: “If you’re looking to sell your property, then investing in an electric car charging point on the driveway of your home could encourage interest, as it demonstrates to buyers that the site is eco-friendly and well-equipped for the future.
“Having to continually charge electric cars can be seen as a downside to owning one, particularly as it can take a while, so having the luxury of your own charging point at home is really appealing.”
Technology upgrades pay off for investors
Next on the list, and a very close contender, is adding solar panels to a property. While this comes at a much higher cost, of an average of £6,000, it can also attract an additional £30,000 when it comes to sell. This is a £24,000 pay-off, so certainly a worthwhile option.
Of course, not every property is suitable for this kind of upgrade. For those where this is not an option, investing in smart home technology is the next best thing. While this has been a buzz word for several years now, it is 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 bring an extra £16,000 from buyers.
Bruna says: “Investing in a smart home is not only appealing due to its ‘cool factor’, but because it also provides an element of ease that caters for all types of people, from those who are interested in technology, to those who need support running a household.”
“Additionally, smart homes are an appealing feature to have in your home as they create an energy-efficient environment, which in turn reduces your bills by controlling your energy consumption.”
Small, simple changes
The final upgrades mentioned by the team that can boost the appeal and price tag 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 of the ideas offered by the electrical experts not only boost a property’s value, though. For landlords offering buy-to-let homes, they hugely boost the appeal for tenants. This will naturally attract a higher rental price tag, as tenants will be willing to pay more for the enhancements on offer.
BuyAssociation has a range of property investments available, most of which are equipped with smart home technology options. Browse some of our opportunities here, or get in touch for more details.
