If you’re looking to increase the property value of your home or to improve your overall living space, there are some renovations and updates that are worth the spend and some that just don’t add much value at all. It’s important to know where to spend your hard-earned dollars when you’re looking to upgrade.
Here are 5 renos that offer the best ROI (return on investment):
- Flooring – Carpeting in every room has been on its way out for quite some time now, as more and more people are looking towards hardwood. Not only does it look great, a good quality hardwood floor will last for years. Even if real hardwood may not fit within your budget, there are some great alternatives like engineered hardwood and high quality laminate that give the same look without the hefty price tag.
- Hardware & Fixtures – Old fixtures and hardware can often make your home look dated. Replacing or updating your existing bathroom countertops, faucets, kitchen cabinet hardware, as well as lighting fixtures throughout is an easy way to bring your home up to date quickly and increase value.
- Bathrooms – The bathroom is one of the most important rooms in the home when it comes to valuation (and for other, obvious reasons). Ensuring that your 3 piece and powder room are up to date will make a huge difference.
- Kitchens – The kitchen is the number one room in the home in terms of valuation as it can make a significant difference in the value of your home depending on the condition of it and how up to date it is. Modern cabinetry, fixtures, lighting and appliances all make a big difference when it comes time to sell your home as they help make a great and lasting first impression.
- Income suite (rental apartment) – The biggest way to increase the value of your home is to have an income suite, or rental apartment. This works well because it can often cover a large portion of or all of your mortgage payments. This positive cash flow can then supplement your income.
Ensuring that you see a positive return on your investment is key if you plan on selling your home. There are areas of the home that won’t necessarily benefit from an expensive remodel, which may end up costing you more than just your initial investment over time if it doesn’t actually add value to the home overall. Renovations and upgrades that don’t add value to your home include:
- Swimming pools
- Extensive landscaping – adding a hedge maze and elaborate topiaries may not be a great idea
- Wall-to-wall carpeting
- Inconsistent upgrades - think stainless steel appliances amidst 80’s wallpaper and shag carpeting
- Over-building - a large addition to your home may not net you the best return if the rest of the neighbourhood doesn’t measure up
Wherever your home renovation journey takes you, remember that you don’t need to spend beyond your means to make updates to your home. If you’re strategic about your renovation plans, you can create a living space that you can enjoy while you live there, as well as one that will earn you a great return on your initial investment.
If you have any questions about this topic or are looking for more advice about adding value to your home if you’re planning on selling, don’t hesitate to get in touch with Jacob today!