The worst three home improvements that WON'T add value to your home (and what you should do instead)

The worst three home improvements that WON'T add value to your home (and what you should do instead)

By Jeffrey Stevens - January 2007

Changing Rooms may be off the air, but 2007's doolally property prices mean the nation's thirst for home improvement - in the hope of a handsome payback when it comes to selling - remains unquenched.

But if you're dusting off your tools and looking for a loan to finance some value-adding home improvement, keep in mind that home improvements and added value do not necessarily go hand in hand.

In fact, get it wrong, and you could not only lose the money you put into your improvements, you could lose value on your home too!

These are the worst three home improvements that will almost certainly add no value to your home, and a few ideas on what you can do instead.

BIG MISTAKE 1: A Swimming Pool

You could build a pool, or equally you could just dig a hole and throw your money into it.

If you're thinking of sinking a hole into the ground to add a pool, you may as well jump in and ask the guy in the digger to bury you. Estate agents agree, swimming pools are the kryptonite of the housing market.

While the thought of splashing around on the single weekend of the year where the sun actually shines, homebuyers will be repelled by the thought of the constant upkeep, the leaks, the grimy poolcover in winter or the fear of their toddler toppling in when their backs are turned.

Similar no-no's
a home gym
sauna

While a swimming pool is the single worst thing you could possibly do to your home's value, building a garage or parking spot is the single most desirable feature requested by homebuyers. In the space your money-draining swimming pool was meant to go, consider building a money-spinning car-port instead.

Approximate cost: £45-£75 per m²
Best method to finance: Unsecured Loan
Recommended loan for this: Northern Rock Loan

BIG MISTAKE 2: Internal Décor

Did you ever see the episode of Changing Rooms where Lawrence's medieval knight-themed dining room made the owner cry? If you missed it, you may have been unlucky enough to catch any other episode of the show which should really have been called 'Lower the Value of My Home'.

Yes, internal décor is almost guaranteed to see you throwing money and time down the drain. Homebuyers will almost always want to make their own mark on a new home and, chances are, your new terra-cotta sponged, rough-plastered provencal kitchen and marble-effect walls in the bathroom are not going to be to their tastes.

Recarpeting your home can be an expensive mistake too. Unless you get the shade and texture absolutely spot on, new buyers will more than likely want to rip it up anyway. Even if they don't, estate agents agree that new carpets (which cost thousands of pounds to buy and install) don’t actually add much value to a home.

Similar no-no's
expensive garden designs
elaborate outside decking

A coat of paint in a neutral colour may only cost a few hundred pounds (or a few thousand if done professionally, and throughout a large house) but can add substantial value to the home.

One homeowner in Brighton saw the price of her small flat jump by £10,000 after being persuaded to paint her coloured rooms magnolia instead.

Approximate cost: £800 - £1000 (for a 2-bedroom flat)
Best method to finance: 0% Purchase Credit Card
Recommended card for this: HSBC credit card

BIG MISTAKE 3: Budget Loft Conversions

We all know that the number one way to increase your property's value is to increase the number of rooms, or the amount of space. So what better way than to break into the space between the ceiling and roof and create a trendy loft, right? Well, sort of.

Even budget loft conversions are far more expensive than you'd imagine and, done poorly, they could not only lose value on your home - they could become a fire-safety liability too.

Remember, just because a loft has been converted, doesn't mean this will equate to more living space (and hence more value). If the loft is cold, dingy, poorly finished off or difficult to get to, or walk around in, homebuyers will be put off, not turned on, by your costly conversion.

Similar no-no's
Cheap kitchen or bathroom conversions
Porch
Badly-built extension

They do have their flaws (cold in winter and swelteringly hot in summer), but a good loft conversion - designed by a reputable architect and installed to a high standard - can indeed add both character and value to your home.

A good loft conversion will have:
- safe and easy access
- plenty of light from skylight windows or dormers
- an en-suite bath or shower
- clever use of the available space
- good insulation
- a quality finish

Approximate cost: £20,000 - £40,000
Best method to finance: Secured Homeowner Loan
Recommended loan for this: Capital One Homeowner Loan