Best home improvements for return on investment

The best ROI home improvements – get the biggest return on your investment

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What are the best ROI home improvements, and will the home improvement you are planning give you a decent return on your investment? These are the questions every savvy home seller should be asking themselves, probably even more so than the more traditional question, 'will it add value'?

While the best ways to add value to a home include dozens of different ways to boost your home price, if you end up sinking substantially more capital than you will ever recoup through a sale, a home improvement will not be a good investment.

Conversely, a simple improvement that is inexpensive and requires a minimum of effort but will give you back 100 per cent is definitely worth it.

The best ROI home improvements

Seasoned real estate experts point out the best ROI home improvements, and explain how to avoid losing money.

1. A kitchen remodel

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This probably will surprise no one, but remodeling a kitchen remains one of the home improvements with the highest levels of return on investment. Jennie Berger, who co-runs a residential redeveloper and house flipping duo Property People , has over 20 years' experience redesigning properties with the maximum ROI (return on investment) in mind. She estimates that a kitchen remodel, although costly, 'will return anywhere between 50-75% (or more).'

If you're deciding between a kitchen and a bathroom remodel, go for the kitchen. The reason, Jennie explains, is that 'even if the bathrooms are older, a retail buyer perceives a full kitchen remodel as more valuable and convenient. Buying a house with a newer kitchen (and older bathrooms) means the new homeowner can tackle the bathrooms if/when they're ready, one bathroom at a time.'

Buyers simply do not want the hassle of a kitchen renovation – 'If you've ever lived through a kitchen renovation, setting up a makeshift kitchen and having to actually use it, can be a total (dusty) nightmare!'

And even if you don't want to completely remodel a kitchen, there are other ways to make a big difference when selling. Jennie especially recommends 'refacing your existing cabinets, swapping old countertops for new quartz or granite, changing out the hardware, and adding a fresh coat of paint, new stainless steel appliances, and more modern, trendy plumbing and electrical fixtures.'

2. Refinished hardwood floors

(Image credit: Jonathan Bond/ Future)

This is another great home improvement that can give you a very high ROI – 70-80 percent in many cases. Jared Barnett , a Licensed Real Estate Salesperson and Co-Founder of The Barnett-Bittencourt Team at Compass in NYC, is confident that painting and refinishing hardwood floors 'can make an apartment feel new again, which will ultimately make a buyer willing to pay more money. A buyer‘s first impression is critical to how they perceive an apartment, and doing these projects will have a huge impact.'

You can learn how to refinish hardwood floors yourself, or hire a professional. Whatever you do, don't miss an opportunity by covering up an existing wood floor with carpet, which will almost certainly lose you money.

3. The small details

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If you really don't fancy a huge DIY project, don't worry – there are plenty of smaller changes you can make that, cumulatively, will give you a good return on investment when selling.

Real estate investor Deb Cleveland , Founder of Small Town Dynasty, has 32 years of real estate investment experience and has renovated more than 400 properties
in upstate New York.

She recommends going through your entire home and making strategic replacements; for example, 'if your budget will afford it, picking light fixtures that all have the same sheen that goes with the look of your home.' Metallic accents catch the eye, so 'installing new doorknobs and kitchen cabinet pulls to match the sheen on your light fixtures ties your look together giving it a high-end decorator look on a budget.'

4. A fresh coat of paint

(Image credit: Jake Curtis)

Exploring fresh paint ideas is one of the easiest and most impactful ways to prepare your home for a sale. According to a HomeGain 2012 Top DIY Home Improvements for Seller survey, if you get it right, just repainting the interior of your home could give you a 107 percent ROI.

Glen Pizzolorusso , a Licensed Associate Real Estate Broker with Compass in Fairfield County, Connecticut, highly recommends a fresh coat of paint: 'I cannot tell you what a fresh coat of paint does to the interior of a house. If you are thinking of selling your home, paint the interior before listing it. A fresh coat of light (think whites, light grays and creams) paint to main living spaces can create the feeling of a larger, warmer space.'

5. Garden landscaping

(Image credit: Polly Eltes)

Finally, don't forget your outdoor space and its huge potential to give you great returns for not very much investment and effort. Marina Vaamonde, Real Estate Investor and Founder at PropertyCashin , told us that in her experience, 'the best ROI for home improvements are modest backyard landscaping ideas. The average ROI for landscaping upgrades is 100 per cent.'

What is meant by modest? Simply landscaping updates that are easy to maintain and won't require your buyer to do lots of gardening. Think a general tidy-up, a few low-maintenance plants, and a neat driveway. Deb adds that as a minimum you can
'mow the lawn, pick up the twigs, trim the hedges, weed the flower beds and put down some fresh mulch.'

Home improvements and ROI: what not to do

When is a home improvement not going to give you a good ROI? Glen recommends thinking sensibly about the ratio of your projected spend and the value of your home – 'If your house is worth $250,000, then doing a $200,000 kitchen remodel is a surefire way to lose money. A good rule of thumb is to spend 10 percent of your home’s value to remodel a kitchen, and 5 percent to remodel a master bathroom.'

Glen also cautions against adding swimming pools unless you are 'prepared to lose money. A concrete pool could cost $100-200k but it may add $10k to the value. '

Finally, what is considered desirable by buyers is always relative and depends on what the general expectations are in your neighborhood. Glen points out that 'adding luxury updates to a home in an area that isn’t considered a luxurious area is another way to lose money. Be mindful of recent sales in your neighborhood, and when in doubt, consult with a local realtor before starting your project.'

Donald Olhausen Jr, Owner of We Buy Houses in San Diego , also urges buyers to put any planned home improvements in context: 'It's easy to say, upgrade the kitchen and bathroom. Although ordinarily true, this will be utterly dependent on what condition your house is already in and what finishes are selling in your neighborhood.'

Do your research, figure out what sells well where you live, and go from there.

Anna Cottrell is Consumer Editor across Future Plc Home titles. She has a background in academic research and is the author of London Writing of the 1930s. She writes about interior design, property, and gardening . On H&G, she specializes in writing about property – buying, selling, renting, mortgages – sustainability and eco issues.

Affordable, High ROI Projects To Complete This Year – Forbes Home

If you’re looking for home improvement projects that really pay off, you don’t have to go for a full renovation with a hefty price tag. Instead, there are plenty of home improvements that are affordable and can be wrapped up in just a few hours. From the kitchen, bathroom and even unused spaces, we’re covering home improvement projects that will boost your home’s value.

Whether you’re looking to put your house on the market or you want to add value to your home sweet home, we’ve rounded up 10 of the most affordable and best ROI home improvements.

THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary.

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1. Focus on the Kitchen

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A complete kitchen renovation isn’t always necessary when you’re looking for a sizable ROI. If your kitchen has good bones, work with what you already have and add a few upgrades.

“Updated kitchens and bathrooms provide the highest ROI when considering home projects. Assuming your kitchen cabinets are in fairly good condition, there are a few updates that provide a big impact that don’t require renovation and can be incorporated fairly easily into your existing [space],” says Shoshanna Shapiro, Owner and Principal Designer at Sho and Co.

Adding “key upgrades such as new pendant lighting over the kitchen island, new cabinet hardware and a unique backsplash,” are all ways to transform the look of your kitchen.

Looking for a bigger project that can still be worked into a smaller budget? Consider painting or refacing your cabinets, changing out the flooring, upgrading appliances or opting for new countertops.

Planning A Kitchen Remodeling Project?

Avoid the stress of doing it yourself. Update your countertops, cabinets, sink, and more through top-rated kitchen remodeling services from HomeAdvisor.

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2. Paint Refresh

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The quickest and easiest way to get some bang for your buck is to give any room in your home a paint refresh. While the cost of a can of paint can vary based on brand and quality, you can expect to pay anywhere between $15 to $40 a gallon.

Interior Designer Jessica Love of Urbane Design says a project she always recommends to homeowners is adding a new color to their bathrooms. “Paint your bathroom walls or vanity a fresh new color,” says Love. “I like to stick with neutral, zen colors for the bathroom.

While painting, don’t forget to add a new coat to the trim and the ceilings for an all over clean look.

Tired Of Looking At Dull, Faded Surfaces?

Book painting services and compare quotes form highly rated painters near you. Find local pros on HomeAdvisor that offers both residential & commercial painting services.

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3. Refinish Hardwood Floors

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Breathe new life into your existing hardwood floors by resurfacing them or installing new hardwoods in your home to see an average ROI around 70% to 80%. There’s no denying that beautiful floors make a great first impression, and with a variety of stain colors, your hardwood floors can be timeless or trendy.

Whether you choose to turn this into a DIY project or hand it over to the professionals, skip the wall-to-wall carpet and opt for hardwoods instead.

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4. Update Mirrors

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If the bathrooms in your home still have the borning builder-grade mirrors, it’s time to evict them. Swap out the mirrors for ones that have frames that match your decor and hardware. From a high end to a discount store, you’ll find plenty of mirrors that match your design aesthetic and budget.

If you’re changing out the mirrors, just make sure the hanging hardware can hold the weight of the new mirror.

Looking for an easy project? Love suggests adding some personality to your existing mirrors by adding a custom frame by using DIY framing kits. She says they’re easy to order, customize and assemble.

5. New Hardware

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From the kitchen, to the bathrooms and on every door—old hardware can make your home seem outdated. Another budget-friendly project that can make a big difference in the look of your home is fresh hardware.

“Switch out your current hardware for something more modern. Mixed metals are trending right now; we’re seeing black with brass and brass with chrome,” Love says.

Don’t stop inside your home, consider changing out the hardware on your home’s exterior as well.

6. Exterior Improvements

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Make a great first impression with a front door refresh. Often a new coat of paint will do the trick, and don’t feel like you have to stick with the original color.

“For a home in need of an update, or simply to add personal style, a bit of paint can go a long way. For a shorter-term project, give new life to the front door with some paint,” says Mel Bean of Mel Bean Interiors. “When selecting a color, consider the style of your home and any materials you need to work with, such as original stone or brick that will not be painted, roof color, hardscaping and the environment surrounding your home. ”

If your front door has seen better days, replacing it for a new style is also a great and affordable option.

While you’re working on the front door, fixing cracked or broken siding and trim and tending to any steps, sidewalks or patios that have cracks, chips, uneven pieces should also be on your to-do list.

Find The Right Exterior Door To Complement The Style Of Your Home

7. More Green Outside

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With all the focus on making changes to the inside of your home, don’t neglect the outside. Sometimes a good cleaning or power washing can breathe new life into your outdoor space. However, don’t forget to landscape and hardscape your area too.

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“For outdoor patios, adding greenery gives the space a new look immediately,” says interior designer Brittany Farinas of House of One. “I love using planters made of stone, or ceramic planters with a fun color or design that ties in with the rest of the color scheme. ”

Adding shrubs, flowers and trees can make your outdoor space more welcoming, create privacy and give you a place to entertain and relax.

When it comes to adding value to the great outdoors of your home, experts agree the one feature to stay away from is a pool. While fun during a warm summer day, a pool is not a feature that offers up a strong ROI.

8. Create Functional Spaces

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From creating a mudroom, a home office, or adding much needed storage solutions, turning unused or underused spaces in your home into new functional spaces will make your life easier and be appealing to potential buyers.

When making these changes, just make sure you aren’t stealing the spotlight from another room, and instead, you’re adding useful spaces to your home. Meaning you don’t want to transform the only closet on your second floor into a small home office. Instead, find inspiration by using wasted space and giving it a new purpose by adding shelves for storage.

9. Finish an Attic or Basement

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While these projects will take up more of your budget, if the attic and basement of your home are unfinished, you can personalize the spaces and transform them into bedrooms, home office, or an additional living room.

Not only are you adding livable space to your home, but you’ll see a ROI for these new rooms.

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10. Update the Bathroom

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If you can’t commit to a full demolition in your bathrooms– there are still plenty of places to work your home improvement magic for a big return. Starting with replacing the tub, toilet and the sink or vanity. Even replacing the showerhead will make bath time more pleasant and add more value to your home. If you’re ready to take on a few DIYs, consider these projects.

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step-by-step instructions on how to start investing from scratch

Contents 📖

Investment - for both beginners and experienced investors - is a tool that helps to create passive income or increase capital to achieve certain goals. In current markets, you can find assets to solve any investment problem.

Why investing is necessary for beginners

The main purpose of investments is to preserve and increase capital. There are quite a few ways to invest, and if you choose the right tools, then even with a small amount at the start, in 5-10 years you can start receiving income sufficient to meet basic needs. nine0003

The sooner an investor starts investing in profitable assets, the sooner he can start receiving passive income.

Where and how to invest money for a novice investor

There are several popular areas that can bring stable income and where it is better to invest money for a novice investor. The simplest and most promising options are deposits, mutual funds, ETFs, OFZs, OFZ-n, structured products, investment life insurance.

How to properly invest in real estate

You can invest in real estate for two purposes:

You need to choose an object taking into account the infrastructure development plan and the current situation in the region. You can invest in different objects, including:

•

Commercial real estate. You can invest in the purchase of offices, warehouses or houses that are suitable for renting individual premises to small companies. The payback period for such an investment depends on the state of the business in the region. nine0003
•

Residential buildings. It is profitable to resell secondary real estate if there is a good repair or a tangible improvement in the infrastructure in the area - the appearance of a metro station, a tram line, a new enterprise with high salaries.
•

Foreign property. Suitable for both rent and sale at a better price.
•

Apartments at the excavation stage. Investing in a residential complex that is still under construction is a profitable but risky option. To reduce the risks, you need to carefully check the developer. nine0003
•

Land plots. Purchased land can be sold at a higher price, its intended use can be changed for the construction of residential and commercial facilities, or a mixed option can be used.

Investments in real estate are distinguished by a high level of reliability. Houses, offices, apartments and land under any conditions will not depreciate completely. In most cases, the cost of objects remains stable or grows. Drawdowns are possible, but they are temporary. nine0003

The disadvantages include not the highest income in comparison with other assets. When working with real estate, you need to expect a return on investment in 5–20 years.

An example is earnings from renting out an apartment or house. If the object was purchased for 60 thousand dollars, and the tenant pays 400 dollars a month, then the cost of the apartment will pay off in 12.5 years.

If the apartment is well renovated and close to the city center, the rent will be higher. Under such conditions, investments can pay off for 9-10 years. The payback period for commercial real estate through rent can be from 7 to 15 years.

Investment in land is good for several reasons:

•

lower competition among investors compared to the residential and commercial real estate market;
•

price growth is more stable;
•

the land market is less sensitive to economic downturns;
•

land will not be damaged by most natural disasters.

The main thing is that the land is legally clean: not leased or encumbered. You also need to pay attention to the purpose of the site. Well, if it is suitable for individual housing construction (IZHS). On the resale of land, you can earn from 20 to 40%. But these are all very approximate indicators, the profitability of investments depends on the specific object.

Methods of investing in financial instruments

This segment has a large selection of assets with different properties and levels of return.

Main directions:

•

Stock market. These are stocks, bonds, mutual funds, options, futures.
•

Foreign exchange market. This is the acquisition of monetary units and currency instruments - for example, deposits, swaps, checks, certificates, futures contracts.
•

Precious metals and stones. Gold, silver, as well as the platinum group: platinum, iridium, palladium, osmium, ruthenium and rhodium. Good for capital preservation. nine0003

Investing in foreign exchange is risky. To preserve capital, investors invest in euro, US dollar, yen, Swiss franc, Czech crown, Irish dollar and others. You can also use bank deposits.

Experienced traders emphasize the insufficiently high volatility of financial instruments compared to the stock market, despite the fact that it allows you to invest in assets with different levels of risk and profit. The Moscow Exchange is suitable for starting work in this direction. The transactions themselves can be carried out through the Alfa Investments mobile application. nine0003

Reliable financial instruments for a private investor with a yield of 4-12% per annum:

•

Bonds.
•

ETFs.
•

Popular Indices - S&P 500, NASDAQ-100, Dow Jones Index, etc.
•

Dividend paying stocks.

Technology stocks, undervalued stocks and large cap brands are suitable for high profits. nine0003

For those who do not want to dive into trading, PAMM accounts are suitable. This is trust management, in which the investor transfers money to an experienced trader and receives part of the profit. Different clients can invest in one account. Everyone receives a percentage according to the amount invested.

There is an opportunity to invest in PAMM accounts in the foreign exchange, stock and crypto-currency markets. Managers can use different trading styles: low, moderate or high risk. The profit and loss of investors directly depend on this:

•

Aggressive strategies can bring 200-300% profit per year. But in case of unsuccessful trading, there is a risk of a quick loss of the entire deposit.
•

Profit from weighted trading is 1-7% per month. For a year, this is from 36%. Losses also happen, but not very significant.

Experienced investors distribute funds between different types of accounts.

You can invest in precious metals and stones through the bank. These assets have a high level of reliability. And their stable value helps to protect capital from inflation. nine0003

Investments in intellectual property

There are also several ways to invest here:

•

Exceptional property. This includes licenses, patents, grants, copyrights, certificates, and rights.
•

Licensed property. This is a purchased right to use a service or object. It is fixed by obtaining a license.
•

Information property. Any training materials, knowledge and experience that have been documented. One example is creating an English course. nine0003
•

Staff development. If you have a business, an investor can invest in the training of specialists. As a result, the service will become better and, as a result, more expensive.

Most often, investors invest in trademarks, inventions, and product samples. And if you correctly guess the demand potential, then you can earn hundreds of percent of profit on the creation of a new technology, information product or software solution.

Investing for beginners: getting started

You need to start by setting goals:

•

Someone wants to quickly increase their net worth.
•

Some people prefer long-term investments and stable income.
•

There are entrepreneurs who have already earned money and just want to keep it.

The set of tools to achieve each of these goals will be different. For this reason, the investor needs to clearly define at the very beginning what kind of result he needs. nine0003

Also, when building an investment strategy, you first need to master the key information. Having studied the terms, principles of working with assets and the main types of investments, you can choose those segments that are more suitable for achieving your goal. Next, you need to thoroughly understand all the nuances of working with selected groups of assets. It will take time.

The situation in different market segments is constantly changing, so after training you will have to follow the news regarding the selected tools and areas. For example, Alfa-Investments has materials for training beginners. nine0003

The right start in investing for beginners

An investor constantly works with risks, so he must initially be ready to lose money. But you should not invest an amount, the loss of which will be too painful.

If there is not much money on hand, it is better to start with extremely reliable assets. You can increase capital with the help of reinvestment: when the profit received is reinvested. You can work with instruments that have a medium and high level of risk using no more than 15% of the starting funds. The smaller the deposit amount, the lower the risks should be. nine0003

The main task at the start is to learn and gain practical experience.

Investment style must be chosen based on the main task:

•

Conservative (bonds, funds). Reliable products with fixed or low income are used. The goal is a financial cushion and capital preservation.
•

Moderate (blue chips). Average risks and profit. The style is suitable for those who want to earn money, but are not ready to take big risks. Such investors buy shares of companies with large capitalization. nine0003
•

Aggressive. Investing in projects that can bring hundreds of percent profit or loss.

When building a portfolio, you need to collect instruments with different risk levels. And most of it should be reliable assets. This approach will provide diversification - reducing the likelihood of losing capital.

Formation of an investment strategy

The strategy must be formed after determining the size of the initial capital, the purpose of investment and the choice of style. This is a set of rules for working with assets that an investor makes for himself. nine0003

This includes:

•

list of assets selected for investment;
•

frequency of account replenishment;
•

algorithm for working with each instrument - its share in the portfolio, sources of information, decision-making scheme;
•

terms of investment;
•

desired amount of profit;
•

The maximum amount of loss an investor can afford. nine0003

The strategy needs to be adjusted if new conditions and data appear in the process of work.

To get the planned result, you need to strictly adhere to the strategy, not allowing emotions to influence decisions. If some asset has not justified itself, it is better to exclude it from the list and find another one.

Newbie Investing Mistakes

Many begin their journey in investing with a desire to make a lot of money quickly. This pushes novice investors into risky decisions when they do not yet have a financial safety cushion. In most cases, such stories end with the loss of start-up capital. nine0003

It is important to understand that investing is not about luck, but about planning and competent work with risks. First, investments in reliable instruments, and only after the appearance of a stable passive income - risky projects.

The following mistakes are common among novice investors:

•

Start without training. Without understanding the topic, novice investors try to intuitively work with assets. This is the path to inevitable losses: a competent investor always clearly understands what he is doing and why. nine0003
•

Use of suspicious analytics. The network has a lot of materials from allegedly experienced investors. But some of them publish unprofessional content. Beginners need to spend time looking for reliable sources, as well as learn how to analyze company reports.
•

Ignoring diversification. Having dealt with one asset, beginners sometimes invest all their funds only in it. Without separating instruments by risk level and sectors of the economy, it will not be possible to generate a stable passive income. It is worth sinking the only asset, and the profit goes down. nine0003
•

Belief in high interest. Beginners often believe that they can earn 50%, 100%, and even 500% per year. In fact, even 30% per annum is already a high level of risk. Therefore, even at the beginning of the journey, you need to tune in to gradual growth for at least 6–12 years.

Investment is a real way to a large passive income and the implementation of ambitious projects. The main thing is to learn the rules of working with different assets, draw up a competent strategy and stick to it, cutting off emotions. In the long term, this approach will allow you to reach a good income. nine0003

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Best home improvements for return on investment

The best ROI home improvements – get the biggest return on your investment

The best ROI home improvements

1. A kitchen remodel

2. Refinished hardwood floors

3. The small details

4. A fresh coat of paint

5. Garden landscaping

Home improvements and ROI: what not to do

Affordable, High ROI Projects To Complete This Year – Forbes Home

1. Focus on the Kitchen

2. Paint Refresh

3. Refinish Hardwood Floors

4. Update Mirrors

5. New Hardware

6. Exterior Improvements

7. More Green Outside

8. Create Functional Spaces

9. Finish an Attic or Basement

10. Update the Bathroom

step-by-step instructions on how to start investing from scratch

Why investing is necessary for beginners

Where and how to invest money for a novice investor

How to properly invest in real estate

Methods of investing in financial instruments

Investments in intellectual property

Investing for beginners: getting started

The right start in investing for beginners

Formation of an investment strategy

Newbie Investing Mistakes

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