Which repairs increase the value of a home after purchase?

Strategic investments: Where the Swiss franc pays off

Energy efficiency: The turbocharger for increasing value through repairs

In times of rising energy prices and strict cantonal regulations ( MuKEn ), energy-efficient renovation is the best approach. This is where the increase in value through repairs is most measurable. A house with energy class G is now a financial risk, while a house with class A or B is a premium product.

Investing in the building envelope – such as roof insulation, facade insulation, and new windows – yields a double return. First, you immediately save on heating costs. Second, you realize a significant increase in value through repairs , as the buyer no longer has to factor in the risk of renovations. Replacing windows (from double to triple glazing) is particularly popular, as it not only saves energy but also improves sound insulation. The market rewards such value increases through repairs with substantial price premiums. Switching from oil/gas to a heat pump is also practically essential today for a sustainable increase in value through repairs .

Kitchen and bathroom: Emotions can be capitalized on.

Purchase decisions are often made emotionally. The kitchen and bathroom are the emotional heart of a property. Increasing the value through repairs is particularly effective here if the existing structure is outdated ("70s charm").

Modernizing the kitchen (open floor plans, modern appliances) creates a wow factor. But be careful: Increasing the property's value through repairs only works if you cater to popular tastes. A hyper-modern designer kitchen in a rustic farmhouse looks out of place and prevents any increase in value through repairs . The same applies to the bathroom: Replacing the sanitary ware, installing walk-in showers, and using large-format tiles transforms a wet room into a spa . This visual upgrade leads to a direct increase in value through repairs , as buyers are reluctant to undertake a bathroom renovation (dirt, noise) and are willing to pay more for a finished bathroom.

Living space expansion: Square meters are worth their weight in gold

Nothing drives up the price like living space. One of the most effective ways to increase value through repairs is to develop unused potential. Do you have a cold attic? Converting it into an insulated room creates new living space. Do you have a damp basement? Waterproofing and converting it into a hobby room or home office generates usable space.

Since property prices are often calculated per square meter, every additional meter leads to an increase in value through repairs . This also includes adding a conservatory or enlarging a terrace. Such structural value increases through repairs require planning permission but often offer the highest ROI, as living space is a scarce commodity in Switzerland.

First impressions: facade and garden

The Americans call it "curb appeal"—the attractiveness from the street . The same applies in Switzerland: you only get one chance to make a first impression. Increasing a property 's value through exterior repairs is often cost-effective yet efficient.

A fresh coat of paint on the facade, cleaned pathways, a well-maintained front garden, or a new front door all signal: "This property has been well cared for." These measures suggest a good overall condition. Visually enhancing the property's value through exterior repairs greatly facilitates the sales process. Neglected gardens, on the other hand, lower the price, as buyers can see the work that needs to be done. Increasing the value through garden repairs (e.g., renewing the patio, installing privacy screens) usually pays off.

The tax trap: Preserving value vs. increasing value

If you are aiming for an increase in value through repairs , you must not forget the tax aspect.

• In almost all cantons, you can deduct the costs of measures to maintain the value of your property (e.g., painting, replacing a refrigerator) from your taxable income.
• You cannot deduct value-enhancing measures (e.g., building a conservatory) from your income, but they will later reduce the capital gains tax on the property when you sell it.

A smart strategy for increasing the value of your property through repairs combines both approaches. Tax offices often accept flat-rate deductions. Carefully consider which repairs you undertake and when to optimize your tax burden. Repairs that are tax-deductible will cost you significantly less in net terms.

Beware of the "luxury trap"

Not every expensive investment leads to an increase in value through repairs . There's a limit, defined by the property's location. If you install a gold-plated faucet and marble floors in a simple terraced house in an average neighborhood, you'll never recoup those costs. This is called "over-renovation." A genuine increase in value through repairs must be in line with the neighborhood's standard. An increase in value through repairs that makes the house the most expensive on the street is often a losing proposition, as buyers would rather look in a better location for that price.

Conclusion

The question isn't whether you should renovate, but how. The most reliable way to increase the value of your property through repairs is by implementing energy-efficient upgrades (windows, heating, insulation) and creating new living space (attic conversion). These measures objectively reduce operating costs and increase comfort.

Cosmetic improvements in the kitchen and bathroom can also increase the value of a property through repairs , but these are a matter of personal taste. Avoid luxury renovations in less desirable locations. Successfully increasing the value of a property through repairs requires planning and market knowledge. A strategic approach will not only make your home more beautiful, but also a more profitable investment.

If you want to know which specific measures will have the greatest impact on your property, Loft offers data-based analyses for your investment planning.

Glossary

• Value enhancement through repairs: Measures taken on a property that go beyond mere maintenance and permanently increase its market value (value enhancement).
• ROI (Return on Investment): A key performance indicator for profitability. It shows whether the increase in value through repairs is higher than the costs of the renovation itself.
• MuKEn : Model regulations of the cantons in the energy sector. They promote energy efficiency improvements through repairs by setting standards for renovations.
• Curb appeal: The external attractiveness of a property. An increase in value through facade repairs significantly improves this first impression .
• Over-renovation: Investments that drive the value of the property beyond the market potential of the location, so that no worthwhile increase in value can be achieved through repairs .