It is a given that we would love to make our home, the place that we spend most of our free time in, the best it can possibly be, with the best features and technologies placed within it. And there are many ways we can improve our home – floors, doors, windows, and fittings. Newer hi-tech features can also be added. Many of us think of improving our property. But have you ever thought of property overimprovement? This rings true especially if you’ve got plans to sell your property later on. In today’s blog, we will take a look at property overimprovement and how you can avoid it.
Why avoid property overimprovement?
It is normal for a person to make their home as developed and advanced as possible. This can be done by changing the interior and exterior of the home. But sometimes, the cost of these improvements might end up exceeding the value of your property. And if you’re looking to sell your property, you won’t be able to recoup the money that you invested in improving your home, as no buyer would be footing the bill for this upgrade. This is why it is called property overimprovement, as it is an improvement that is not financially beneficial for your home or does not add true value to your home.
Factors to consider when improving your home
Property improvement can certainly increase the value of your home, but only to a certain extent. As there are many extrinsic factors that play into the value of your home. And if the cost of improvement exceeds to the point that it isn’t adding to the value of your home anymore, that is when property overimprovement is occurring. Only when you keep in mind the factors that affect the value of your home can you truly avoid overimprovement from happening.
Location is the number one factor that determines the price of any property. And it is also the factor that determines if you’re doing property improvement or property overimprovement. For example, if you’re living in a middle class neighborhood such as Shewrapara or Mirpur,and renovating your apartment by applying the latest interior design styles, then it will definitely be considered property overimprovement. It will never fetch a price high enough to justify this improvement, as property buyers looking to buy apartments here are looking for affordable apartments. This will result in you having to sell for less, and losing the money you invested on luxurious decor. However, if you’re planning to do such improvement in a high end area like Banani, Gulshan, or Dhanmondi, then it will be considered a justifiable improvement, as this would add value to your property, as buyers here would pay a premium.
Another thing to consider is the changing demands of the market. If your ultimate goal is to sell the property, then doing a lot of improvement might be detrimental, as it might prove to be futile when you’re looking to sell your property. Different buyers might have different preferences, and not all might like the improvements that you made to your property. In that case, you’ll have to refer to the demands of the market, as well as the factors that determine residential property prices. You will also have to consider the lifestyle of the people living in the neighborhood and cater to their needs. After considering all these, you can start implementing upgrades and avoid property overimprovement.
Factors that don’t fall under overimprovement
There are certain things that are the bare minimum that must be maintained, or improved where ever possible. These include things like having a lift, fire safety, and generator backup, all of which are expected in most modern homes nowadays, regardless of the property’s price and location. Here is how you can construct a building with proper safety measures.
Length Of Stay At Home
Many homeowners plan on staying at their property for a short period of time, selling the property later on for profits. In that case, property overimprovement is something that you should keep an eye out for. Any and every improvement that you make to your property must be made with proper foresight. But if you’re looking to live here for a long period of time, then there is no need to worry about property overimprovement. This is true especially if you’re planning to live here for generations. In this case, your comfort and needs come first, as selling the property is not important here.
There is another thing to keep in mind. If you’re not planning to live in your property for a long time, then make the furniture so that it can be moved. This means that attached cabinets in the bedroom and kitchen are not advised. When buying stuff such as the kitchen hood and other fixtures, be sure to not spend too much, as these might have to be removed in the future, and property overimprovement can be avoided.
So, keep in mind that improvement might not always be the best thing to do, and it should be done selectively, especially if you’re looking to sell the property in the near future. Tell us if you found this article on property overimprovement helpful.