There’s no doubt that house renovations are getting more popular these days. In the Quarter 2 2016 Houzz Renovation Barometer Report, industries in the home renovation sector are enjoying robust market improvements with readings ranging from 63-78 out of 100. The high activity in renovations is mainly being driven by homeowners age 35-54, otherwise known as the GenX people.
As such, more homes are getting upgraded and for various reasons. Some are integrating smart home applications and devices. Some want to raise the value of their home and ripen it for selling. Some desire to prepare their homes for their eventual retirement. No matter the reason it’s happening more often now than it ever did before.
Renovating can be a bit tricky especially if you aim for a good return of investment (ROI). Just because you spend much on an expensive renovation does not mean you will essentially gain back or profit even from what you just spent. If you need money for a renovation read our review of Prosper loans: https://www.personalincome.org/prosper-loan-reviews/
Carefully consider the following small renovations below and you will yield better returns for all the work and effort. (Amounts indicated are based on the most recent Cost vs Value Report from Remodeling.)
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Legend: C- job cost V- resale value R- cost recouped
(C: $1,268, V: $1,482, R: 116.9%)
For mid-range homes the only renovation that will yield profit is through fiberglass attic insulation with returns of up to 116%.
Manufactured Stone Veneer
(C: $7,519 V: $6,988 R: 92.9%)
Adding this to your home’s wall exteriors will actually yield back almost the same amount you’ve spent for it.
Garage Door Replacement
(C: $1,652 V: $1,512 R: 91.5%)
This part of your home gets used so many times spending on its renovation will actually give 90% ROI even for upscale homes.
Entry Door Replacement (steel)
(C: $1,335 V: $1,217 R: 91.1%)
If you ever want to start a home renovation, begin with the entrance and replace it with a steel door as ROI is close to 100%.
(C: $20,142 V: $14,446 R: 71.7%)
Have your house roof renovated can be a bit pricey but the returns can be up to ¾ of the amount you’ve spent for it.
These next five renovations will yield the worst or lowest return of investment. Don’t put your money on this unless you really need to have these changes in your home.
Major Kitchen Remodel
(C: $59,999 V; $38,938 R: 64.9%)
Having your whole kitchen revamped will only result in a low ROI both for mid-range and upscale homes.
(C: $17,908 V: $11,769 R: 65.7%)
Remodeling a bathroom may yield slightly better returns for mid-range homes but not for upscale homes with ROI of 57.5%.
Master Suite Addition
(C: $115,810 V: $74,224 R: 64.1%)
Spending a good amount on adding another master suite is not the best idea of all as ROI is just close to 60%.
Backup Power Generator
(C: $12,712 V: $7,556 R: 59.4%)
Throwing in a power generator in your may sound like an appealing addition but the cost you’ll recoup will only be close to 60%.
(C: $42,233 V: $23,727 R: 56.2%)
Adding a bathroom may sound like a good investment but do know that returns will only be half of what you’ve spent for it.