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Written by: Mandisa Ndlovu
Homeownership is often met by the desire to personalise and improve one’s living space. Hence, most homeowners invest substantial time and money into enhancing their property, from a fresh coat of paint to extensive renovations. A common misconception is that these renovations will immediately increase the property’s value.
One of the most common myths in the property industry is that every rand spent on renovations directly increases the property's value. The reality is that not all improvements are made equal. The return on investment (ROI) for home upgrades can vary significantly depending on several factors, such as the local real estate market, types of renovations undertaken, and the quality of the workmanship.
The property market is dynamic and ever-changing. Supply and demand, economic conditions, and various other factors determine the value of your home. Even if you’ve made significant investments in your house, you may not see a comparable gain in its value if market conditions aren’t favourable. Additionally, if you try and sell your property during a buyer’s market, when supply outnumbers demand, the worth of your house may not be completely realised. In a seller’s market, you may receive a greater return on your investment (ROI).
While investing in your home can improve your living experience and potentially boost the value of your home, it’s vital to manage your expectations and approach renovations with a thorough understanding of the real estate market’s complex dynamics.