The volatility of the modern stock market and cryptocurrency are fair indications of the risk vs reward system that exists in investment. While making big bets on the success of a business or crypto-coin can result in high rewards, the risks are also monumental. For many owners of buildings, either residential or commercial, a safer investment may lie in simply renovating what one already has.
A common problem many people face is not knowing what they should and shouldn’t renovate. A major kitchen remodel may only return 58% (source), so knowing what to renovate to truly increase value can be difficult.
How many times have we heard from ‘experts’ that freshening up your kitchen will help sell your property? Many, but as you can see the return is not very high. $10,000 spent on a new kitchen may only result in $5,800 in your pocket.
Wouldn’t you rather have a holiday?
We have found the renovations that will result in better ROI (return on investment) so that you can make tour decisions based on facts, not TV personalities.
Here are some renovations which return higher percentages of their cost, which can lead to profitable returns as the value of the property increases.
Although it seems shallow, one of the first impressions a prospective buyer will have is the view from the street. By improving the street-facing exterior of your property you can expect to increase the chances of potential buyers wanting to see inside.
There are many different ways one can do this:
The front door to your house is one of the most noticeable features, as our eyes are drawn to the entrance. By replacing your existing door with a steel one, you can increase the energy efficiency of your house with markedly low maintenance to boot.
A steel door can expect a return of between 60-90% and can cost less than $2,000USD.
A stone veneer is a sure-fire way of improving the general aesthetic of the front of your building. With an expected return of 95.6%, it’s almost a no-brainer as to why we’re seeing more of these on modern houses. With increased access to materials and updated installation techniques, a stone veneer can last for up to 50 years.
Recent estimations indicate installing a stone veneer can cost an average of around $9,300. With the return value so high it’s expected that within a couple years of installing one you should be making profit off it.
Important to different people for different reasons, a garage can be a place of creativity and security. By upgrading your garage door as part of your residential remodeling, you’re also improving the look of a large portion of the front of your property.
A new garage door can expect a return of 94.5% (source), and can cost around $3,500USD.
The aforementioned renovations are sure-fire ways of getting people interested before they come inside, although what’s next?
If the interior of your house doesn’t match the quality of the exterior, people will quickly become disinterested.
Here’s a few less-costly touch ups that can match the external improvements:
- Touch up internal and external walls. Whether repainting or simply replacing the wallpaper, this is something prospective buyers are sure to notice.
- Replace old fixtures in kitchen and bathroom. Rusty or outdated fixtures may look out of place in your newly refreshed building, replace them with something more suitable.
However, remember that the ROI is quite low. Why not just repaint the room or change the doors instead? Changing the doors is quite the transformation when done properly.
Consider doing a minor remodel rather than a major one. Replacing cabinets or cupboards in your kitchen or bathroom can also be a cost-effective way of increasing value.
Dramatic effects can be had easily with a little initiative.