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.