Real Estate Investor Magazine South Africa November 2018 | Page 28

IMPROVING
Clever ways to add more
value to your property
BY EDITORIAL
S
chalk van der Merwe of Rawson properties urges prop-
erty owners not to dismiss the idea of renovations as an
alternative way to upgrade their property and get a better
return. “Buying and selling property is expensive these days,”
he says. “The cost of selling a R1.5million home and buying
a R2.5million home is in the region of R250k. Spending this
kind of money needs some serious consideration – it’s definite-
ly possible that adding on or renovating your existing home
might be a better option.”
The current average cost of additions and alterations
to existing homes in SA is about R7323 per sqm, which is
around 17% higher than at this time last year. But not all
home improvements are this costly. There are other ways to
add value without breaking the bank. For example, a few weeks
of hard work in the garden and a fresh coat of paint can give
an older home a whole new look and boost its market value
considerably..  
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NOVEMBER/DECEMBER 2018 SA Real Estate Investor Magazine
“At the same time, you should seek qualified advice on
whether the house you plan to renovate is structurally sound,
on whether it needs costly re-wiring, re-roofing or new
plumbing and on the estimated cost of the changes you would
like to make, says Berry Everitt, CEO of Chas Everitt.
According to Adrian Goslett, Regional Director and CEO
of RE/MAX SA: “In a buyer’s market, sellers often over-invest
on renovations to make sure that their home sells. However,
not all renovations will add value to your home. “You can then
work out whether there is a sufficient margin between the
average home selling price in the area and the current value of
your home - or the one you plan to buy - to justify what you
plan to spend on renovating or upgrading the property.”
It does mean, however, that buyers and owners need to take
proper precautions to avoid over-capitalising by undertaking
expensive home improvement projects in an area that would
not immediately support a sale price that included the original