Time for your home renovation: take advantage of the current property market

In real estate, timing is everything. The property market doesn't just influence when you buy or sell; it also can help you decide when you should roll up your sleeves and embark on those home renovations you’ve had in mind.

As market dynamics shift, they create unique windows of opportunity where changes in your home can make more of a difference. Seeff covers factors that make now a good time to break out your tools or call your contractor. And discover the renovations that would serve you well in selling or renting out your property.

Why now is a good time for a home renovation 

Although every part of the year has advantages, current local market conditions make home enhancements a better bet at present:

Make your home stand out: With the recent interest rate hikes, some buyers may think twice before entering the market. Increased mortgage payments, high utility costs, rising inflation, and municipal rate increases are sure to eat at buyer purchasing power and home affordability. This can impact the demand and create a challenging environment for sellers. Thoughtful home renovations can make your property more appealing and help you compete for attention, especially if the pool of interested buyers is limited.

Cater to opportunistic buyers: Economists believe that the cycle of interest rate hikes in South Africa has ended with potential interest rate cuts starting from next year. There will still be buyers on the market who will see the value of investing in this period. They will also benefit from the increase in the threshold for transfer duty exemption to R1.1 million and a supportive lending environment as banks offer competitive home loan deals. With the right home renovations, your property can be tailored to appeal to these buyers and ensure you secure a favourable sale.

Jump on semigration trends: Pockets of the country such as the Western Cape are overcoming economic conditions and enjoying great demand from buyers. Semigration is driving the demand as prospective homeowners look to areas with a strong local government and well-run municipalities. Depending on your area’s desirability, home renovations can help you maximise the value of your home and your asking price.

Get behind the rental growth: The rise in interest rates has boosted the demand for rental properties. Whether you’re already a landlord or keen to enter the lucrative buy-to-let market, having an appealing property will work to your advantage. Home renovation projects, however small, can help make tenants feel like they are getting great value for their rent and also help you hold onto quality tenants.

Let spring work in your favour: If you’re renovating your home with a potential sale or rental in mind, you’ll also have the full benefit of the season. Spring’s sunny weather brightens up listing images, creates a lush, flowery yard for wonderful curb appeal, and entices potential buyers to head out and view properties. The warmth will also ensure paint, plaster, and concrete all dry faster depending on the project you take on. 

Which home renovations have the biggest returns?

Before you fork out top rand, consider if your home renovation will add value instead of eating away at your profits. Your renovations should be within your budget and compliant, focusing on adding comfort, safety, and improved functionality or efficiency. Also, keep your ideal buyer in mind. If you’re appealing to a potential student buyer or renter, those luxurious marble countertops will add little value for this market.

With this in mind, here are some good general home renovations that will boost your home’s value:

• Paint your walls in a neutral, universally loved colour.
  
  
• Add or upgrade security features such as burglar bars, security gates, and alarm systems.
  
  
• Make your home loadshedding-proof by installing a gas stove, solar panels, inverters, and battery systems. If your area is drought-prone, consider rainwater harvesting solutions. These can be expensive so ensure you don’t over capitalise. 
  
  
• Sort out cosmetic defects like cracked basins and tiles and holes in walls. Also, consider replacing worn-out fixtures and fittings that may raise red flags for potential buyers or renters.

Pinpoint renovations needed for your home

Before you get the ball rolling, the best move is to consult with a property practitioner with local area expertise. They can do a valuation and provide advice on the exact renovations that can help you attract buyers or tenants. Across Seeff’s branches, you can get a no-obligation valuation for your home; with our virtual valuation, we can even get it done without needing to access your property. Reach out to our team at your convenience to get started.