“Spending money on a poolside patio or new thatch for the lapa is likely to give you a much better payoff, rand for rand, than a new kitchen or an extra bathroom," says Kotzé.
“As agents we see this all the time - less expensive projects like repainting your home, or waterproofing the roof, or sanding and resealing your wooden floors usually generate much better returns on expenditure than big additions and alterations,” says Gerhard Kotzé, MD of the RealNet estate agency group.
And this is underlined, he says, by the results of the latest research by Remodeling Magazine, which has published an annual Cost versus Value report for the past 30 years to help owners decide which professionally-done home improvements are most likely to pay off.
“This research clearly shows that making your existing home the best it can be is the most cost-effective course of action, with the top-ranking projects of the year - those likely to generate the highest return on money spent - being the installation of fibreglass ceiling insulation, the installation of a steel front door, the improvement of the exterior appearance of your home, a minor kitchen remodel and a garage door replacement,” says Kotzé.
Remodeling Magazine editor, Craig Webb, says it is worth noting that that some of the most common home improvement projects, like adding a bathroom or bedroom, recoup the least amounts on resale of the property. Indeed, he says major alterations generate an average return on investment of about 64%, while smaller home improvements and repairs pay back an average of about 74%.
In addition, they found that exterior or “kerb appeal” projects paid back an average of almost 75%, while interior projects returned just 63% on average. “And this also holds true for South Africa, because we generally like to spend a lot of our leisure time outside, gardening, swimming or entertaining round the braai,” says Kotzé.
“Spending money on a poolside patio or new thatch for the lapa is likely to give you a much better payoff, rand for rand, than a new kitchen or an extra bathroom. And it will still increase the appeal of your home for prospective buyers. In fact, kitchens and bathrooms are such personal spaces that a major revamp might not pay off at all if your dream makeover fails to impress a buyer that has totally different taste.”
Meanwhile, Kotzé says the Remodeling Magazine report does identify a couple of new renovation themes which appear to be catching on strongly, and are likely to generate increasingly good returns. The first of these is making homes more energy efficient, and it encompasses projects such as the installation of ceiling insulation, solar geysers, and rainwater tanks. The second is “universal design” which ensures that a home can be navigated and used just as easily by the elderly or disabled as anyone else, and it reflects increasing lifespans and a growing preference for “ageing in place”. This includes relatively easy-to-make improvements like grab bars in bathrooms, no-threshold showers, lever-style doorknobs, and countertops and sinks that can accommodate a wheelchair if necessary.