On average, improvements add 10% to the value of a buy to let home while giving an 80% return on investment, says a report from peer-to-peer lender Zopa.
However, although fitting a new kitchen is the most popular building project, with Zopa borrowers, costing an average £9,600, the return on investment was 49% and the extra value added to a home was about £4,750.
|Improvement||Return on Investment||Profit (Median)||Average Cost|
Top of the list for home improvements is a conservatory with a massive 108% return on investment and profit of £5,750 on an average outlay of £5,300.
An extension gives the most profit ' adding an average £14,000 to a home?s value.
More than 80% of buy to let landlords and home owners asked about improving their properties indicated that they had no intention to sell and would rather remodel their homes than take financial risks.
Zopa CEO Giles Andrews said: 'With the latest housing market reports showing the market to be slowing down, home owners could add significant value by looking at ways to improve their current homes, rather than move. With record low rates on borrowing, home improvements can be a cost-effective way to add value to your property for the long-term.?
Article courtesy of LandlordZONE