If you’re planning on making any renovations to your property this year, there are a few things to consider before you commit to a project. While personal preference and budget will always be important factors when it comes to figuring out what you want to do with your home, it’s also worth thinking about which changes will deliver the best return on investment.
After all, investing in real estate through adaptations to your own home can be a great way to build your asset portfolio, and provide you with everything you need for a successful property sale later in life. According to the recent Cost vs Value Report from Remodeling magazine, some changes can be more valuable than others. Here are just a few options to consider when you want the most bang for your buck.
1. Minor Kitchen Remodeling
A kitchen is one of the first rooms that most homeowners consider when making a renovation. After all, your kitchen can be a place of community, where you bond with your family over breakfast, or chat with friends over a cup of coffee. It can also be a space brimming with creativity, where you explore hobbies like cooking and baking.
However, before you begin tearing out sinks and removing cabinets, remember that the average return on investment for a “minor” kitchen remodel is 81.10%, compared to only 59% for a major renovation. Instead of turning your kitchen upside down, consider adding new counter tops or giving the room a fresh splash of paint instead.
2. Window Replacements
While stunning new bathrooms, living rooms, and bedrooms are all tempting when you’re thinking of ways to add value to your home, remember to consider the functional elements of comfortable living too. A new set of windows can be a great way to make your property more energy efficient, and therefore more appealing to budget-conscious buyers.
The Cost vs Value Report suggests that a window replacement can deliver a 74.3% return on investment. While you’re changing out your windows, you might want to think about siding replacements for the exterior of your home too, as these deliver a 76.70% ROI.
3. A New Deck
It might surprise you to learn that one of the most appealing additions any homeowner can make to their property, is building a new deck. This may be because a deck simply gives your home an extra degree of curb appeal for the modern homebuyer, or it may be that future homeowners simply like to envision themselves sitting outside the home on hot summer days.
Whatever it is that makes decks so appealing, keep in mind that a wooden deck addition delivers an 82.80% return on investment, whereas a “composite” alternative drops the return down to 63.60%.
4. An Upgraded Bathroom
While it might be a good idea to make only minor changes to your kitchen design, renovating your entire bathroom could be a great way to add value to your home. The Cost vs Value report suggests that a universally-designed bathroom leads to great recoupment costs of about 70.60%. What’s more, a bathroom remodel has a 70.10% return on investment, compared to only 59.90% for a bathroom upscale. It seems that it’s better to go big or go home when it comes to bathroom changes.
Smaller Jobs are Often Better
When investing in real estate, it seems that the smaller jobs are often the ones that have the highest return on investment. For instance, while you might recoup less than half of the cost associated with adding a new en-suite to your master bedroom, a garage door replacement delivers a 98.30% return on investment.
The next time you’re thinking of investing in a renovation, start with the small projects first.
