Most people already think of their homes as an asset, but the truth is, if you don’t do anything with your home then it’s simply draining money from your bank account. It isn’t an asset, it’s a liability. Plain and simple! This is why so many people are choosing to rent these days.
That being said, overhauling your home could be the best financial decision that you make. If you have some cash set aside to spend, you could make one of the following home improvements and make a huge return on your investment. If you make multiple improvements, you’re going to do even better! Eventually, you’ll have a home that’s worth far more than the original buying price. You’ll be able to sell up and move to a bigger home, or simply sell up and enjoy your earnings.
You do need money to invest in the first place, but it can be such a smart financial decision to make. Here are some of the best improvements you can make to get the highest returns:
Cost – $39,188 on average / Return – 93.5 percent at resale
Loft conversions are the new ‘it’ improvement to make to homes. There are always new and exciting improvements, and this one is probably going to be around for a while. By converting your loft, you create another usable room in your home. This room could be for your teen as a bedroom, for you as an office, for a spare bedroom…whatever you want. There are no limits, providing your loft space is a suitable space to convert. If it needs pre-work performed on it to make it more suitable, then of course it will cost you more.
Adding insulation to lower utility bills is a good shout. Many people are even looking at solar powered attics these days! They are far more eco-friendly, and with so many people caring about the environment, this makes the property more attractive.
Cost – $6000 / Return – 108%
By adding a conservatory to your home, you could add around a $30,000 on average. A conservatory is a great extra room in the home that allows you to make the most of your outdoor space come rain or shine. It utilizes heat, so you can get cozy with a good book as you gaze over your garden, even if the temperature is below freezing outside. Conservatories have many uses and make a practical addition to the home!
Cost – $3,502 for landscaping and $1,465 on a designer on average / Return – 100% at resale
Everybody needs a great looking garden, so don’t underestimate the importance of landscaping. With the right landscaping services, you could enjoy a smoother garden with more durable, attractive materials It can literally give your entire garden a facelift and make your home appear more cohesive as a whole.
Minor Kitchen Remodel
Cost – averages $14,913 / Return – more than 83% on average
You don’t need to completely overhaul your kitchen to get a big return on your investment. In fact, you can make minor changes to your kitchen, and you would get back 83% on average. Minor kitchen remodels could be changing out tiles, adding or taking away design elements, and perhaps replacing your counter-tops with something more attractive. You may even like to change things like the fixtures and fittings; door handles, light fixtures and the like. These things are ridiculously cheap to change but can add such huge value to your property!
Major Kitchen Remodel
Cost – $21,000 / Return – 91%
The kitchen is one of the other most important rooms in the home. We’ve all got to eat, haven’t we? Food is prepared in the kitchen, so appropriate counter-top space, appliances, and other elements like task lighting need to be included to ensure a practical space. Then you need to consider things like eating in the kitchen, whether you’ll entertain friends in there, and anything else that goes on. Do your kids have a routine where they do their homework at the kitchen table? Do you want an open plan kitchen, or a kitchen island? There are so many incredible things you can do with your kitchen!
Cost – $2,000-$22,000 depending on patio or decking / Return – 90.3%-98.5%
In general, having a patio installed is much cheaper, and will get you a slightly lower return on investment than decking would. That being said, decking can be very expensive, although it will usually get you the highest return. There are pros and cons to both options, so make sure you look into these carefully.
Although a patio is the cheaper option, it can still last around 25 years or longer. They can only be built on flat surfaces though, unlike decking which can be built on uneven surfaces. Make sure you assess all of the pros and cons and figure out what is possible for your property!
Whichever option you choose, you will make a lucrative return on your investment.
Cost – $6000 / Return – 95.5 percent at resale
There are lots of different things you can do to make exterior improvements to your home. You could potentially paint the exterior, although you may need to be conservative with your color choice depending on what the other homes are like in your area. If you want the outside of your home to stand out, then you could paint the front door a nice bright color. Fibre cement siding is also an option, as are small additions like hanging baskets. You have an endless amount of options. If you choose to make larger exterior improvements, you’ll need a civil contractor or somebody similar who knows how to handle these kinds of projects. This way, you can be sure that everything is complete on time and within your specified budget.
Minor Bathroom Remodel
Cost – $3000-$7000 / Return – average of 102%
A minor bathroom remodel could also potentially help you to get a huge return on your investment. Think about it; the bathroom is one of the most important rooms in the home, if not the most important room in the home. Everybody who lives in a house has to use the bathroom, every single day. Sometimes this is for things like brushing your teeth and toilet trips, other times it’s to take a long, relaxing soak in the bath. This means that the design of a bathroom must be both practical and relaxing.
Adding a new tub to the bathroom won’t be too expensive, but it could completely change the look of the bathroom and add a focal point to boot. Adding new tiles and accessories could also perk the place up and give it a new lease of life. Then you have the option of replacing your hardware, such as your taps and showerheads.
Major Bathroom Remodel
Cost – $10,000 and up / Return – 93.2%
Depending on what you want to do in your bathroom remodel, it can cost more or less. However, the fact remains that you will make a hefty return on your investment when you remodel the bathroom. You can add a new bath, and even do something more drastic, like transform your regular bathroom into a fully fledged wet room. These things take time, but they can completely change the value of your home and make it more desirable.
Cost – around $500 per window / Return – 89.6%
We all need strong and sturdy windows that are going to stand the test of time. New windows can last at least 20-25 years, so you need to make sure you’ve chosen the right kind. There are many different styles, whether you have a period home or you’re looking for something more modern. The right windows won’t only look great, they will help with the insulation and cooling of your home depending on what time of the year it is. They should also be secure enough to deter intruders!
Living Room Decor Updates
Cost – N/A / Return -66%
Living room decor updates can fit into your budget however you like, whatever that may be. Although the return isn’t as high as some of the other options on the list, it’s a very simple way to make a 66% return. You could add a feature wall, or even simply repaint the living room in neutral colors so it appeals to a wider portion of buyers.
Cost – $20,000 on average / Return – 71%
A home extension is great if your home is on the smaller side, or even if you simply want to add another room to your home. They can cause a little disruption while you’re waiting for them to be completed, but you can’t grumble too much at a 71% return.
There are so many amazing investments you can make to make a bigger return on your home. Just avoid adding a pool – they are a lot of work and you may only get a 7% return, if that!