Boundless Management

Buying a residential property is not where your investing opportunities end. Once you own the house and turn it into a home, there are plenty of home renovations that you can invest in to increase the value of the property. While most homeowners take time to improve resale properties after they buy them and move in, several of these homeowners fail to choose upgrades and modifications that will increase both functionality and property value. Read on and find out which projects will be an investment and not just an expense before you take on your next renovation project.

Home Renovation Projects That Will Deliver the Biggest Return on Investment

1. Updating Plumbing and Electrical Systems in Older Homes

   Not all projects that you pay for are going to completely pay for themselves in the form of ROI. One project that is reported to offer an average ROI of 260% is updating plumbing and electrical systems in older homes. These projects may not require demolition, but you will need to hire a professional plumbing and electrical contractor to get the work done. Not only will this translate into a home with a higher value, you will also receive discounts on your insurance and save on your utility bills.

2. Updating Your Traditional Kitchen Into a Modern Chef’s Kitchen

   The kitchen is the heart of any home. If you ask any experienced real estate agent, most will tell you that lack of upgrades in a kitchen can actually break a sale no matter how updated the rest of the property is. If you are looking for the best room to invest in, the kitchen is more than likely the place to start. Kitchens remodels will return between 60 and 80%, depending on the upgrades that you make. You will need to consider the the price of your home to determine how much money you should invest in the kitchen. All too often, people go overboard in the kitchen and price their homes out of the market. Here are some upgrades that are sure to add value:

   • New granite counter tops
   • Refacing or replacing cabinetry
   • Upgrading flooring
   • Upgrading to steel appliances appliances
   • Building a kitchen island if space permits

3. Turn Your Master Bath Into a Haven

   People who are buying homes are looking for spacious master baths with room for both partners. Because space and amenities are highly desirable in the master bath, you can turn your master bath into an investment opportunity. Depending on the layout, you may only need to focus on upgrades. If the room is entirely too small, this is where projects can get expensive. You can expect your master bath remodel to yield more than a 60% return, but you need to choose the right upgrades. Upgrading to dual sinks, a custom shower, and an efficient toilet should do the job to increase value.

4. Transform the Outside of Your Home With New Siding or Gutters

   You do not have to focus all of your renovation efforts on the inside of your home. In fact, curb appeal and exterior upgrades can tack on a lot of value. Not only does new siding add curb appeal, it can also make your home more efficient. With upgrades like siding, gutters, and even decks, you can expect your projects to yield an increase in value of between 75 and 85%.

You need to consider trends in the buyer’s market and what buyers are looking for when you focus on choosing investment opportunities that will increase property value. Believe it or not, a majority of renovations that people focus on do not really add value. By focusing on the right systems in your home and choosing the right rooms, you can improve upon your home and benefit from the improvements in the long run.