Opportunity gained

When the stock market is in free fall, we tend to react by moving to safe havens such as bank guaranteed term deposits, bonds and high quality defensive stocks that are more likely to maintain dividends. At such times, the path through the options is fraught with risk while trying to forecast the turnaround point is hard enough for the experts to achieve.

One could invest in property, or move our savings to cash, which at best alleviates the risk of high losses in the short term. However, when the Share and Property markets are both in decline while interest rates are at risk of increasing all at the same point in the economic cycle, the options to maintain and indeed improve our wealth position are limited.

? How to preserve what we have worked hard to accumulate and continue to invest for the least risk and the best prospect of advantages going forward, is the question on everyone’s minds at present. 

Let’s turn to the practical application of the one asset class that can improve our financial position. For those people who already own property, a clever choice can be to add value to their property by adding a thoughtfully considered high quality home improvement.

For a relatively small investment, this can serve to improve lifestyle and practical amenity in the short term, and add value to the property asset to realise returns on that investment as a longer term strategy. In the event of a sudden need to sell or when selling is desirable; or if the property is later used as collateral for other financial goals or needs, the improved value of the property produces better and more likely returns on investment that if those same funds were invested in most other asset classes.

The important proviso here is that a home improvement needs to be considered with care to ensure it will deliver that viable return into the future. Considerations to achieve best advantage include:

 

 Selection of quality products, materials and reputable suppliers with a strong brand behind them and a proven track record of delivering quality. * Buying quality is an investment that will serve you well, long after price is forgotten.

 The improvement should be designed with styling and colour schemes that has broad appeal and will not easily date. The design should make the property desirable but not risk overcapitalizing.

  Energy savings potentials should be thoroughly investigated - including available government incentives and rebates as well as utility cost savings. New initiatives are being introduced to the building industry that will advantage households that create an alfresco outdoor living area. This may be a patio-deck that includes an outdoor kitchen facility that runs on gas. Shade and Ventilation create comfortable outdoor living areas in summer that reduce or remove the reliance on expensive air conditioning and prevents the sun from entering windows to remove otherwise sweltering hothouse conditions.

The latest in sunroof technologies for example: include sensors that automatically open and close in line with the prevailing weather conditions. This maximises the flexibility options to manage the flow of light, shade, weather protection and add beauty, lifestyle amenity and value to the property.

As energy costs increase (forecasts suggest a 60% increase in Queensland power utility costs in the year ahead), the value of an al fresco outdoor living area will be highly sought after. While savings do not perform well in declining markets, there can be no better time to invest in a well designed quality home improvement than the present. We know that Build costs will increase dramatically once the carbon tax is introduced (the HIA estimates that the cost of an average new home will increase by $6000 in 2012, the utilities costs to heat and cool most existing homes is already forcing many home owners to consider innovative solutions to reduce their cost of living).

This information is prepared by Queensland Lifestyle Patios, 

division of AZ-Tech Lifestyle Concepts Pty Ltd

(authorised Stratco Outback Dealer, Brisbane areas).

Call us on  07 3822 5608
Discuss an alfresco outdoor entertainment area for the most savvy investment decision you could make this year by way of a quality home improvement.

Memberships: