Add the value back on to your home

The Telegraph reported how the average home had lost £2000 off it's value in December, however, as it pointed out - it may be possible to not only claw some of that loss back, but actually increase your home's value.

The right home improvement can not only add value to your home but also make it more desirable to a potential buyer.

Generally speaking, those improvements which add living space to your property will have the greatest effect on its value (by as much as 7%) but be careful not to create a negative effect by taking over small gardens with large extensions or conservatories.

Converting the loft with a en-suite bedroom can add up to 20% to your homes value. A new kitchen can add between 10% and 15% whilst giving your homes exterior a makeover could add up to 15%.

If you're interested in improving your home with a view to increasing it's value or making it more sellable, then one source you may not have thought of to ask is your local estate agents. They'll be able to tell you based on past experience what improvements have the most effect on properties in you area, in terms of adding value and sale-ability.

Home Buyer Incentives - which ones are really worthwhile?

Home-buyer incentives – which ones are really worthwhile?

We look at the different incentives on offer for home-buyers, from the traditional to the wacky, and investigate which ones are the most valuable for both buyers and sellers.

If you're thinking of improving your home prior to selling it or have decided to stay put and spend the legal and stamp duty fees etc on improving your home, then don't forget to try and get more than one quote (preferably three) for comparison. You can get free, no obligation, online quotes for all your home improvements - from double glazing to driveways, loft conversions to solar panels at Home Improvement Quotes .co.uk - click here to try it now.

According to the Land Registry, the average house price peaked at £182,914 last year – more than seven times the average income, which according to the Office for National Statistics stands at £24,000. With this in mind, buyers are increasingly attracted by generous incentive packages offered on new-build homes. However it’s not just new-builds which have incentives attached – private sellers are also adding valuable extras to their properties in a bid to sell fast, and still achieve the full asking price.

First-time Buyers
Home-Buyer incentives have traditionally been targeted at first-time buyers, who would otherwise be unable to afford a home of their own. With many incentives this is still the case and there are various schemes which first-time buyers can take advantage of, including shared ownership, deposit schemes and percentage buys.

Shared ownership was originally set up to allow key workers, such as firefighters, police officers and teachers to afford a house close to their place of work. However with property prices rising, the scheme has been opened up to anyone with a regular income, provided they are unable to afford a house using the traditional buying channels. Under shared ownership, the home-buyer purchases a share of the property – usually between 25 and 75 per cent – by taking out a mortgage with an ordinary lender. The housing association or property developer will own the remaining percentage of the house, which the buyer will pay heavily subsidised rent on. The rent is pegged to inflation and is usually reviewed by the landlord annually – though most will cap the rent at a certain point. Each year, buyers are invited to purchase further shares in their property under a process known as ‘staircasing’, until they own 100 per cent.

Another incentive offered by new-build developers is a percentage buy, where the housing company will let buyers purchase 100 per cent of a new house, at only 75 per cent of the asking price. The buyer then repays the developer over a period of ten years or when the property is sold – and is charged no interest on the repayments. However the repayments are reflective of the price of the house, so as the house value increases, so do your repayments.

The final, and perhaps simplest, first-time buyer incentive is the deposit scheme. These are sometimes advertised by developers as “Move-in for £99” schemes – where the developer will pay your five per cent deposit, stamp duty and legal fees. Sometimes these schemes go even further, with some housing companies giving away £1000 cashback and furnishing the property with £5000 worth of goods. Some new-builds targeted specifically at first-time buyers come with everything from fridges and cookers, to linen and cheese-graters! The total value of all these goods is on average £11,500, so it is well worth looking into – and you don’t have to worry about finding extra money to furnish your new home!

Existing Homeowners
Incentives are not just for first-time buyers – there are plenty around for those of you who are looking to sell as well as buy. Again, most of these come from new-build property developers, but they often have great benefits to the seller and can really take the hassle out of moving house.

The main incentive for house sellers is the 100 per cent part exchange. Under this scheme, the new-build developer will buy your old house, freeing you to move into your new home quickly and without the hassle of selling yourself. This eliminates the stresses that come with a property chain, and completely cuts out the need for an estate agent – which means you pay no agency fees. Remember that because the developer will want to sell your old house quickly, you will typically be offered ten per cent less than the asking price – but weigh this up against a chain-free move and no agency fees and you will usually come out of it better off.

To qualify for the part exchange scheme, your new house must be more valuable than your old one – usually worth between 25 and 30 per cent more.

There are many similar incentives on offer. Under the chain-breaker scheme, the housing company will buy a lower value property further down your property chain – enabling the rest of the chain to move fast, and your sale to complete. Other housing companies will employ agents to take over the selling process on your behalf while you move into you new house, with no fees involved.

From the sublime to the ridiculous
There are some home-buyer incentives which just border on the ridiculous – and these are not just limited to new-build developments. With houses on the property market moving very slowly, some private sellers are throwing in extras to sway buyers into paying the full asking price – and fast!

The list of incentives which private sellers are offering ranges from £20,000 sports cars to four-week holidays – with sellers offering buyers use of their own holiday homes, provided they pay for their flights. In a case recently, one seller was offering a place for one child at the prestigious prep school round the corner from the house – the school was fully subscribed until 2011, and needless to say, the house sold within the week!

Other incentives include commuter train tickets for the year – which can cost upwards of £10,000, and special, bespoke incentives based on the location of the house itself. For example, a flat above a nightclub in London recently sold with a fully paid annual membership to the club below. The former flat of a Jeans designer in London even came with the offer of cost-price women’s Jeans for the duration that the buyer lived there!

New-build developers have been offering prospective buyers free products for years – white goods, carpets, curtains, but recently their incentive packages have changed somewhat. The latest family incentive packages include offering buyers a £19,000 BMW, gym memberships for the family, or a package of four plasma screen TV’s!

If you are thinking of enticing buyers to your property, do remember to be careful! Don’t get carried away, and end up parting with something worth a small fortune – or promise something you can’t deliver on.

If you're thinking of improving your home prior to selling it or have decided to stay put and spend the legal and stamp duty fees etc on improving your home, then don't forget to try and get more than one quote (preferably three) for comparison. You can get free, no obligation, online quotes for all your home improvements - from double glazing to driveways, loft conversions to solar panels at Home Improvement Quotes .co.uk - click here to try it now.

Buy-to-let: how to make your property most appealing

Buy-to-let: how to make your property most appealing to the rental market.

Getting a foot onto the property ladder is becoming more difficult so a growing number of people are looking to rent – and with new regulations announced this month affecting capital gains tax for landlords, the buy-to-let market looks even more appealing to investors. Here, Mark Cooper, Managing Director of homeimprovementquotes.co.uk, looks at how to make your property most desirable to the rental market.

What’s new in the rental market?
The announcement from the government this month, that capital gains tax is set to decrease for landlords, has made the rental market look more promising for property investors. Buy-to-let investors will pay just 18 per cent in capital gains tax – down from 24 per cent last year. Rented homes are also in high demand as families are struggling to get onto the property ladder. The shortfall of good quality family homes for rent is noticeable, especially since the introduction of HIPs earlier this year. So how do you make your property more appealing to prospective tenants?

Identify your tenants:
Your main aim when decorating your buy-to-let property is to appeal to as many different tenants as possible, but it helps to have an idea in your mind as to the type of tenant you want to attract. The type of house you are letting will limit the options – obviously you’re not going to let a studio flat to a family of four – but consider the options when decorating. A young professional will be looking for a clean, modern space without too much fuss or clutter, whereas students may be willing to settle for a less modern house – however they will usually need it to come fully furnished. If you are letting your property to a family, it is worthwhile remembering that they probably have plenty of their own belongings so will only need the basics – cooker, washing machine, fridge/freezer etc.

Keep it simple:
Magnolia and white may seem like a bland colour scheme, but it is by far the safest option. You don’t want to put tenants off with outlandish colours! The more neutral a property is, the more tenants can personalise it with their own items – rugs, cushions, paintings – and then when the next tenant arrives, they can do the same. Remember you are not decorating this property for yourself, so you don’t have to like it! If you think it’s boring, it’s probably the perfect rental décor.

Not only will white and magnolia appeal to the most tenants, it is also the cheapest option – a litre of white paint can cost as little as five pounds! If every room in the house is painted the same colour, it is also easy to touch it up if it starts to look tired or to add a new coat between tenants. Matt emulsion is the cheapest option, but is probably best for use on ceilings as it marks easily. Soft sheen paint is slightly more expensive, but is more durable and easier to keep clean – best for use on walls.

Always go for white:
When it comes to fitting a bathroom in a rental property, always go for white – not only does it look clean, modern and fresh, it is also the cheapest option. A brand new white bathroom suite comprising bath, basin, toilet and taps can cost less than £500 and is one of the main things on a tenant’s checklist. An old-fashioned or coloured suite could make the difference between a potential tenant choosing your property or someone else’s. Most people will also consider a shower to be a standard requirement, but don’t worry, these can cost less than £50 and are easy to install. Remember to stick to the basics in the bathroom – most tenants only want it to be functional and are not worried about luxuries such as heated towel rails or Jacuzzi baths, however much you’re tempted!

When it comes to tiling the bathroom, don’t ruin all of your hard work going minimalist by choosing dark, overbearing tiles. White tiles can cost less than seven pence each, and it’s really not worth spending any more. Plain white tiles look clean and fresh and will complement almost any suite – it also means that tenants can put in any of their own bathroom accessories like towels and bathmats, without having to worry if they match!

Pay attention to the floor:
It’s no good having a fresh looking house if the carpets date back to the seventies! Recovering the floor doesn’t have to cost the earth and will make such a difference to actually letting the property. Plain cream carpets start at less than four pounds per square metre, but may not be practical for every room in the house, particularly if the front door opens directly into the lounge. Muddy boot-stains are the last thing you want on a brand new carpet! Laminate flooring is easier to keep clean and starts at less than six pounds per square metre. It can also be fitted anywhere throughout the house, except in the bathroom – this would probably be best carpeted, as tiling or lino can be cold! Tenants are unlikely to pay a higher rent for extras such as underfloor heating or luxury carpets – again it’s better to stick to the basics.

Furnishings:
Most tenants will expect rental properties to be let unfurnished – however students and some young professionals will need furniture. With students especially, it’s not worth spending a fortune – things will be spilled on it, it won’t be taken care of properly and you’ll lose out on costs. Remember students and other tenants won’t treat it like their own furniture because it’s not theirs – it’s yours. It is a good idea to take a deposit for all the furniture at the beginning of the lease and make sure you keep a record of what state it was in at the time – that way, at the end of the lease, you will know how each item has fared!

If you buy all of your furniture from one place, you may receive a discount or qualify for free delivery. Some furniture shops offer what is called a “rental package” which contains everything you need to furnish a home – beds, wardrobes, cupboards, sofas, chairs, dining tables etc. When choosing a package, again be mindful that you only need to provide the basics – tenants can add to your furniture with their own. You don’t need to provide fancy side-tables or CD-racks – these are optional extras which tenants can buy themselves. If you are letting to students, remember that they will need slightly different furnishings – desks and bookshelves are extras which may not apply to regular tenants.

If you are planning to let your property unfurnished, you will still be expected to provide the basic appliances. It’s worth shopping around for these as some stores offer discounts if you buy more than one appliance at the same time and again, some offer “rental packages”. It is at your discretion which appliances you consider to be a basic need, but a cooker, washing machine and fridge/freezer are a must! Some tenants will ask for a tumble dryer, but most won’t be put off by the fact that there isn’t a dishwasher!

Finally, always consider the rent you’re going to achieve when planning your décor and buy accordingly. Keeping things simple will reduce your initial outgoings and keep future maintenance costs low, ensuring you maximise your profits!

Everything you need to know about HIPs

Selling your house? You will need a HIP
Everything you need to know about HIPs

On 1st August 2007, the government will introduce the Home Information Pack (HIPs) policy in the UK. Although the initial implementation will only affect larger properties – those with four bedrooms or more – HIPs will eventually impact every home-owner in the country, and anyone who is looking to buy or sell property. Mark Cooper, Managing Director of homeimprovementquotes.co.uk, goes through exactly what you need to know about the packs.

Q: What on earth is a HIP?
A: Home Information Packs (HIPs) are a new government policy designed to regulate the process of property transactions. Basically a HIP is a set of documents that contain specific information about your property such as how energy efficient it is, and records of any actions by your local authorities. You will need to have a HIP if you want to sell your property.

Q: Woh, that’s inconvenient – why is the government introducing them?
A: Apparently, the government reckons that £350 million a year is currently lost through house purchases that fall through because buyers discover problems on the property after they have made an offer, and then cancel the deal. The idea of HIPs is to make all the information about the property available before this can happen. HIPS are also supposedly going to stop ‘gazumping’ from happening – when a seller uses the ten-week period it takes for an agreed buyer to get a survey on a property done to accept better offers from other parties, forcing the price up.

Q: Weren’t HIPS in the news recently?
A: You will probably have heard quite a bit about them in the news recently, and the government has got a fair bit of negative publicity over them. This is mainly because the policy was originally intended to come into effect on 1st June 2007, but at the last minute the government delayed the introduction by two months and announced it would be phased so only people with large properties are to be affected initially.

Q: Okay I’m confused already – when does the policy come into force? Will it affect me?
A: HIPs are going to be a legal requirement for anyone selling a property with four or more bedrooms after 1st August 2007. If your property is smaller than this, you don’t have to worry about HIPs just yet – the government has said that the policy will be extended to cover properties of all sizes, but hasn’t announced when this will come into force yet. The HIPs policy does NOT affect Scotland, but the Scottish parliament is planning to introduce a similar policy in the near future.

Q: So what does a HIP contain?
A: A HIP must contain five basic documents:
1. HIP Index – This basically sums up what is in the pack, giving a brief overview of the information in the form of a checklist. Everyone involved in the sale – buyer, seller, estate agent, authorities – can see the status of the pack and its contents.
2. Energy Performance Certificate (EPC) – This is the most important part of the pack from the government’s point of view, and the most expensive to the seller. It contains your property’s environmental impact rating, on a sale of A to G, as well as recommendations on how to increase your energy efficiency. Has to be done by a registered inspector.
3. Sale Statement – Basic information about the site.
4. Title Documents for the Property – Official evidence of who owns the property.
5. Local Authority and Drainage Searches – This includes records of local land charges, planning decisions and proposals from local authorities, and details of the provision of drainage and water services to the property.

There are additional documents to complete depending on whether the property being sold is a leasehold or a commonhold. Each of the documents must be no more than three months old when you first put your property on the market. The HIP will be valid until the property sells, and you can still use it if the property comes off the market and then goes back on again within 12 months.

Q: Sounds complicated – how much am I going to have to fork out for one of these things then?
A: Estimates say £400 minimum

Q: What! How much?
A: £400, and all of it has to be paid for by the property seller – although the cost may end up being transferred to the buyer because people raise the property price to cover the cost. The most costly part of the HIP will be the EPC, which will cost £150 alone and requires an EPC inspector to carry out an assessment on your property.

Q: How do I get a HIP?
A: If you are about to put your property up for sale, there are a number of options available to you. Your estate agent should be able to provide the pack for you for a fee, or alternatively you can use a solicitor or one of a number of specialist pack providers that are around. You can also compile the pack yourself, which could potentially save you some money.

Q: Will HIPs affect my plans to extend my house?
A: No – unless the new room is a bedroom that will take you over the four-bedroom threshold. It’s important to remember that HIPs will measure energy efficiency, and take into account any new rooms you have built when it comes to putting your property on the market. Your HIP will also keep record of all your dealings with the authorities, such as getting planning permission.

For more information, visit homeimprovementquotes.co.uk