8 ways you can add value to your home without breaking the bank

South African house prices have increased marginally, but when adjusted for inflation, they are declining. Despite this, there are cost-effective ways for South African homeowners to add to the value of their property.

First National Bank numbers show house-price growth averaged 1.2% year-on-year in January this year and is expected to rise to 1.7% in 2025.

The numbers differ from province to province, but no matter where you live, real house price growth is stagnant or negative because of inflation.Gavyn Letley, from specialist loans provider Direct Axis, says when seeking to add value to a residential property, homeowners should consider small, strategic upgrades that enhance the appeal of the house rather than costly renovations that may not pay off.

“Most experts agree that property values in most neighbourhoods have a ceiling, so an expansive overhaul might not deliver the returns you expect. Instead, smart cost-effective improvements can make a significant impact.”

Tips to consider are:

• Set a budget: When you’ve decided how you’re going to add value to your home, work out the costs. If you’re employing a contractor, ask for a detailed quote so you know exactly how much you’ll need. If you have the skills, time and tools, the DIY route will save you labour costs, but it’s still a good idea to work out how much all the material will cost. Once you know the costs, you can consider how best to finance the project, either from savings or a loan.

• Create curb appeal: First impressions matter. A freshly painted exterior, a well-kept garden and sparkling, clean windows can instantly make your home more inviting. The best part is that these improvements require more effort than money. Take a drive around the neighbourhood to see what makes other houses stand out.

• Have a plan and stick to it: Avoid taking on too much at once. Tackling one project at a time is the best way to stay within budget. It will also help to ensure you complete projects rather than leaving unfinished spaces.

• Repair before renovating: A brand-new kitchen won’t compensate for a leaking roof or broken gutters. Address maintenance issues first, to avoid costly problems down the line.

• Don’t be extravagant: Custom features or luxury add-ons, such as a jacuzzi, might not offer a good return on investment. Instead, focus on upgrades that appeal to a wide range of tastes. An example is adding an inverter and solar panels to help with electricity back-up in case of loadshedding.

• Keep it simple: Major structural changes can be expensive and unnecessary. A fresh coat of paint, sanding and re-varnishing wooden floors, or installing a stainless-steel kitchen splashback can refresh a space at a fraction of the cost.

• Prioritise cleanliness and upkeep: Regular deep cleaning of the kitchen and bathrooms, including tiles, grouting and ceilings, can keep these high-traffic areas looking fresh. Something as simple as replacing an old shower curtain can make a significant difference.

• Avoid unpleasant surprises: Before listing your property, consider getting it inspected for electrical compliance, cracks in the walls or floors, rising damp, dry rot or pests. By addressing these issues proactively, you can avoid last-minute price negotiations or potential buyers walking away.

“When it comes to adding value to your property, less is more,” says Letley. “Have a plan, focus on upgrades rather than full overhauls, do it incrementally to spread the cost and prioritise the changes that will create the most appeal at the least cost.”