Renovate, don't re-invent your home for sale

11 Januarie 2007

Although fuel prices have come own from their mid-year highs, this week's
increase (subs: Wednesday 6 Dec) indicates that prices are likely to
remain
in a generally higher range, and this is prompting a growing flow of
homebuyers back to the inner suburbs.

"Many people feel that generally higher fuel prices and transport costs
are
here to stay," says Dr Piet Botha, chairman of the Nationlink estate
agency
group, "and are now seriously weighing up the high cost of commuting long
distances to work, school and shops against the generally higher prices of
homes in inner suburbs and city centres."

And for those tired of spending hours in the car every day, there is more
than the fuel price in the balance, because quite apart from the cost of
time lost to work, family and other commitments while driving, the total
cost of commuting also includes the vehicle's fixed and running expenses,
which can rapidly mount up to quite a large sum.

According to the Automobile Association's website, for example, if a
vehicle
with a purchase price of R100 000 travels an average of 20 000km per year,
the fixed cost value will be 163c/km. If the same vehicle has an engine
capacity of 1.6 and is petrol driven, it would have a running cost of
86c/km. If these two figures are added together, the total operating
outlay
for the vehicle will be R2,49/km - or almost R50 000 a year on top of the
fuel cost.

"The cost of the time wasted of course varies from person to person but
many
commuters are now reckoning it is just too high at any price and this is
driving a definite trend of middle-class families moving back to the
older,
core suburbs - in spite of the fact that property prices in these areas
are
often higher. They are calculating that they can afford higher home loan
repayments out of what they save on commuting," says Botha.

"Areas surrounding the inner city or close to business nodes often offer
an
exclusive address and homes therein will sell at a related price.
Knowledge
Factory's SAPTG states that the current average selling price for full
title
homes in Johannesburg central, for example, is just under R2,5m, while
that
for homes in Cape Town's central suburbs is just under R4m, and that in
Durban central is just under R1,6m."

The area you select will of course depend on your budget. Rosebank and
Morningside in Gauteng are both close not only to major arterial routes
but
also to business nodes of their own. However the SAPTG reveals that the
average selling prices for full title homes in these areas over the past
year has been some R3,8m and R2,4m respectively.

More.
Natinnsub 2 last

Giving your home a facelift prior to putting it up for sale may be a good
idea, but it's usually not worth embarking on major alterations.

That's the advice of Dr Piet Botha, chairman of the Nationlink estate
agency
group, who says that while owners do stand to increase the appeal and
value
of their home by renovating, large-scale remodelling just before resale is
unlikely to pay off unless they initially bought a really dilapidated
property for a song.

"Of course most buyers will steer clear of homes that look like they
require
lots of work," he says, "and it has been proven over and over that
boosting
the 'curb appeal' of properties pays off in quicker sales and higher
prices.

"But some homes do need more than a new coat of paint and colourful pots
of
flowers on the porch if the owners hope to get a good price. The trick is
to
know where to draw the line between profitable and unprofitable
improvements.

"In short, what owners should be looking to do is renovate, not re-invent
the property."

A good way to decide what improvements to make, Botha says, is to stand
back
and take a look at your home as objectively as you can. "Imagine you're
the
buyer and viewing the property for the first time, then make a note of
what
would impress you and what would really put you off.

"The latter items are what you need to work on - after you have set a
renovation budget and planned how to make it go as far as possible. This
is
essential because it is all too easy to blow your whole budget on one item
such as a bathroom revamp and leave the rest of the house in an
unappealing
state.

"Indeed before you decide to modernise anything or add on anything, you
should spend your money to ensure that the home as it stands is shipshape,
with everything from door handles and light switches to bathroom fixtures
and the sprinkler system in good repair and working order. This will
usually
please buyers and at the very least will mean that they have no excuse to
talk down the price."

What is more, he says, if your budget does stretch to bigger improvements,
you should be very careful to stick to plain designs and neutral colours.
Pretty good bets are new tiles and tubs in bathrooms; new doors and
countertops on kitchen units; more cupboard space in bedrooms and new
light
fittings in living areas.

"Outside of that, it is quite likely that you will end up spending much
more
on the renovation than you can hope to recoup on resale of the property,
and
thus end up actually making a loss instead of boosting the value of your
home."