Whether you’re building your dream house, purchasing an investment property, or flipping your current home, equity in your home is a powerful tool to have under your belt for the future.

So, what is equity? In the simple terms, your home's equity is the difference between how much your home is worth and how much you owe on your mortgage. And building equity increases the amount of money you have in your home that you may be able to use now or in the future.

So lets look at some of the elements of property ownership that determine the value of your home and things that you can capitalize on to get the optimum equity in your home.

Location, location, location: Probably the most important question of all. After all, it’s not easy to transport your home elsewhere! The location of your home has a big impact on its overall value and can make or break a future deal. 

  • Is it in a location where that will have a growing demand in the future? Some research into your local authorities’ future plans around development and transport can provide direct value based on these future prospects.
  • Does it have easy access to facilities and amenities that you use daily?

Kerbside appeal: First impressions last! The front yard and the front of the house is the first thing anyone sees when visiting your home.  The old rule of thumb is that the external of

of a house generally reflects the inside.  Here are a few things that you can do further that may add value to your property.

  • Mark your entrance! Paint your front door or add high end door hardware and security.
  • A white picket fence is a hallmark image for a reason. Make sure your fence and landscaping is in tip top shape.
  • Add a custom letter box or a stand out house number.
  • And lastly, it is amazing what a fresh lick of paint does. It’s like a facelift for your home

Timeless design: Often less is more and when you add in any furnishings, a home’s overall aesthetic can quickly become quite lost.

  • Let there be light! It is truly a wonder what natural light can do to save you on energy costs, keeping mould at bay in bathrooms and in increasing the perception of space. Skylights are another item that is having a big impact on the home design scene. Make sure you design with a natural light forward mentality.
  • Keep it simple, with the colour palette that is. Trends change and we want to make sure your choices are as timeless as possible. Create a vision board and stick to it. Neutral colours are generally always on trend with block colours coming and going with time.  Soft furnishings can be the easiest way to introduce these colour trends and are easily interchangeable.  
  • Think green. Anything that can reduce your overall energy consumption, increase airflow and ensure a comfortable living temperature in the home is a plus.
  • Maintain, maintain. Keep your home in good order by ensuring that little details like door and window latches are secure; marks and scratches are removed from walls and flooring; gardens are trim and tidy.

Reduce the clutter: Remember what I said about first impressions, well reducing the amount of distraction ie. Clutter in your home can produce big impact for a small outlay.

  • The age old rule, ‘a place for everything and everything in place’.
  • Function and design can go hand in hand. Ask yourself ‘what is the purpose of this’; and does it add to improve the aesthetics of your home?
  • And sometimes, ‘less is best’ works in most situations to improve the look and feel of living spaces
  • Consider removing items that don’t fit into your function and design, these can be put into storage or sold to provide funds towards better design selections.

Here we have looked at a few ideas that may build the equity in your home so when that valuer knocks on your door to provide a valuation report for your bank, you will be ready to provide the best first impression that you can without a great amount of outlay

General Advice Warning: This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information provided, your objectives, financial situation and needs. In particular, you should seek independent financial advice.