Home » Misc » Best returns on home improvements

Best returns on home improvements


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

Homes & Gardens is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here’s why you can trust us.

(Image credit: David Lovatti/Future)

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

(Image credit: Ginny Macdonald/Sara Tramp)

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

(Image credit: deVOL)

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.

Best Renovations For Adding Value To Your Home

Renovations have the ability to make us happier in the places we call home, but some updates can add more value than others when it’s time to sell or refinance. Some of the best home improvements — think an updated kitchen, new deck or remodeled bathroom — can get pricey. That’s why before you decide to take on a remodeling project, it’s helpful to know what kind of return on it you might expect — that is, how much of its costs it’ll recoup, in terms of adding to your home’s value and asking price when you put it on the market.

Best home renovations in 2022

Each year, Remodeling magazine analyzes costs for major remodeling projects with the value those projects retain at resale. Recently released, the 2022 Cost vs. Value report compares the average cost of 22 remodeling projects in 150 markets throughout the U. S.

Here are the six home remodeling projects that nationally deliver the highest returns on investment (ROI), according to the report. So if you’re thinking of listing your home, these are the renovations that should top your to-do list.

1. Garage door replacement

A good-looking garage door is high on the list when it comes to getting cash back on your investment. The estimate for this job is based on the cost of removing and disposing of 16-by-seven-foot garage doors and replacing them with four-section doors with heavy-duty galvanized steel tracks, and assumes you’re reusing the motorized garage door opener. This curb appeal enhancer could get you back nearly the entire amount (93.3 percent) of what you spent on it when you sell your home — one of the few home remodeling projects to do so.

2. Manufactured stone veneer

Stone always imparts a classic, classy vibe. Replacing vinyl siding with stone veneer — even on just a part of your home, such as the entryway — can greatly enhance the exterior and, again, the curb appeal of a house. The average cost estimate accounts for 36 linear feet of sills, 40 linear feet of corners and one address block, and materials including two water-resistant barrier layers and corrosion-resistant lath and fasteners. This project also recoups almost all of its cost (just over 91 percent).

3. Minor kitchen remodel

A modern-looking and functional kitchen can of course boost your enjoyment of everyday activities like cooking, sharing meals with your family and entertaining friends. It’s a strong selling point with prospective home buyers too. A minor remodel, as the report defines it, is based on a 200-square-foot kitchen with 30 linear feet of countertops and cabinets, where you might be replacing appliances with new, more energy-efficient models; refacing cabinets with shaker-style panels; installing new countertops or a sink; replacing hardware; adding new flooring; and repainting the walls. Except for the appliances, it mainly involves cosmetic changes, and that’s how you’ll recoup close to three-fourths (71 percent) of your outlay. If you’re thinking ROI, keep the project modest. Interestingly, major kitchen remodels that involve changing the room’s size or layout, or installing new cabinetry, return much less: 53–57 percent.

4. Siding

Old or dilapidated siding can make even the nicest, structurally sound home look worn-out. The report considers replacing it with two types of quality man-made materials: fiber-cement and vinyl.

Fiber-cement

For the average home, replacing 1,250 square feet with new fiber-cement siding will cost you just over $22,000 and you can expect to get back more than two-thirds of that investment upon resale. This upgrade includes 4/4 and 5/4 trim (4/4 and 5/4 are fractions measuring thickness).

Vinyl

Vinyl siding can be more budget-friendly than fiber-cement siding, but it has nearly the same ROI. The $18,662 average cost estimates replacing 1,250 square feet with the new siding, and you should get back roughly 67 percent of that investment upon resale.

5. Windows

Windows are the eyes of the home, it’s sometimes said. Again, you have a couple of options, frame-materials-wise, which impact the ROI a bit.

Vinyl

You could recoup just over two-thirds of the cost to replace your current windows if you install low-E, simulated, divided-light vinyl windows with a custom-color exterior finish. (Low-E means low emissivity, an energy saver.) You’ll want to ensure that the trim exterior matches existing ones, and the interior trim is left untouched, to keep costs within range. The average cost for this type of renovation — which accounts for 10 windows — will set you back $20,482.

Wood

If you do the above, but make the frames out of warmer wood windows (better for older or more traditional-looking homes), you’ll spend a little over $24,000 for the job. Not surprisingly, since wood is more expensive, your expected return on investment drops by a full percentage point.

6. Deck addition

Having a finished outdoor area to work, entertain or just relax in is tops on many prospective homebuyers’ wish lists. The deck remains one of the most popular sorts of “hardscaping” elements. And yet again, material does matter.

Wood

The classic wood deck is less expensive to install — though it requires more upkeep — and offers a pretty good return, close to two-thirds of its outlay. The estimate is for a 16×20-foot deck with a simply patterned floor, railings and stairs — plus a built-in planter and bench.

Composite

Composite decks have exceptional durability. You won’t have to worry about them rotting, warping or splintering like wood tends to do. As a result, they’re more expensive, which hammers their ROI somewhat, down to 62 percent.

How to pay for home renovations

The good news is that there are a number of ways you can pay for them. To finance home improvements, consider a home remodel or home repair loan, which are unsecured personal loans you can get through a bank, credit union or online lender. You can also use credit cards to cover home renovations, although the interest rates can be high.

If you want to go the secured loans route, mortgages can also pay for home renovations. You can obtain a home equity line of credit (HELOC), which is a revolving line of credit that’s backed by your home. Because HELOCs are secured, they tend to have lower interest rates than unsecured loans.

Alternatively, you could get a home equity loan, also known as a second mortgage, which has a fixed rate, is paid out in a lump sum and repaid over a predetermined duration. A home equity loan might be a strong contender to pay for home improvement projects if you have a firm idea of what you want to do and how much it’ll cost.

You could also do a cash-out refinance, which swaps your current mortgage with a new, bigger loan so you’ll have the funds to make renovations. Refinancing comes with closing costs and can stretch out the length of your repayment period, but if you can get a low interest rate, it can be one of the more cost-effective options.

Bottom line on home value-enhancing renovations

Bear in mind that these figures are national averages. Costs can vary greatly by region based on the cost of labor and materials, as well as the level of service offered. And they can change. “Inflation is a major factor in home remodel materials, as many common materials and contractors are increasing in prices,” says Mary Anderson, co-founder of Brotherly Love Real Estate, a Philadelphia-based firm that buys houses for cash. Particularly wood: The ROI on all the lumber-involved projects has dropped significantly this year, as prices have soared.

Still, the right remodeling project can still boost your home’s worth over time. If you refinance, for instance, an appraiser takes renovations into account when estimating your home’s value. A higher home value means you’ll have more equity and a lower loan-to-value ratio. You might even be able to cancel private mortgage insurance payments earlier than anticipated.

Likewise, when you go to sell your home, buyers are likely to pay more for a clean, well-kept property with modern updates that’s move-in ready .

Other options suggested by Ryan David, owner of We Buy Houses in Pennsylvania, include, “Use tax refunds to pay for renovations. Or, use your business funds if you have, for example, an S Corp. If you are flipping homes, the money you use you can write off as business expenses.”

4 ways to get the most out of your day as a caregiver

There is a popular meme on the internet:

Being a parent is easy. Just like riding a bike. Only the bike is on fire, you are on fire and there is fire around you, and sometimes you feel like you are in hell.

As a parent of a 12-year-old girl, I confirm that this is often the case. Now imagine this picture again, then remember that you need to care for a loved one. There are no words that can adequately describe the horror in which you find yourself. Don't get me wrong, raising children and caring for loved ones can be deeply satisfying. Especially if you can overcome the most basic limitation that caregivers face: lack of time.

Where does the whole day go?

While I was at the company, I berated myself for years for not doing everything I had planned for the day. I can't say that I am very organized or efficient with time, I have tried almost all task management systems, but to no avail. At the same time, I do know that I have many abilities, and I can complete tasks that many others cannot.

Now that I am older and wiser and, above all, responsible to myself, I no longer feel so much anxiety. I've learned to prioritize better, set reasonable expectations, and take a break if I fail at something. In order for you to make the most of your day, I would like to briefly describe my day, as well as give you tips to help you feel more comfortable.

Morning

I don't like mornings. In college, I never scheduled classes until 11:00. Now, appreciate the irony, I'm the one who gets up at 6:30 in the morning to wake the rest of the family.

Now I get up early, walk the dog, wake everyone up, turn on the lights and heat, check the day's tasks, sometimes take a shower and drink my first cup of coffee. And now it's time to collect her daughter to school in order to bring her to the beginning of classes, which usually takes about an hour. Next, I take my morning meds (yes, take care of a is also important), have breakfast, have a second cup of coffee and plan the rest of the day.

One of the biggest challenges in my life as a caregiver is that each day is different in terms of schedule and unpredictability of my wife's condition. I never know what to expect until I try to get Jay out of bed. For the rest of the morning, I usually do whatever Jay needs: shower, toilet, meals, and therapy visits, if any, for that day.

Day

During the day I usually focus on solving Jay's problems or taking her to the doctor. I also do household chores like laundry, finances, planning and everything else you can imagine. I am also slowly writing on my blog.

I only have about three hours for everything, because my daughter comes home around 15:00. Then I turn my attention to her activities, planned activities and homework. I also need to start cooking dinner. During the day, most of the time, I run the risk of not completing a scheduled task, because an unforeseen problem will inevitably arise and I will have to make changes to the schedule.

Evening

By the evening you get tired, for this reason the evenings are sometimes very tense. It is important to me that everyone is fed (including the dog), that my daughter is ready for the next day, that the family spends “quality” time together, and that my wife and daughter go to bed on time.

(The dog goes to bed at 20:30 without any reminder.)

By the time I finish everything and clean the house, it is usually around 22:00-22:30. The next two hours are just mine to make up for what I missed during the day, work on projects, or relax by watching TV.

When things are going well, I go to bed at about 1:30 am, which is normal for me since I've always been a night owl.

About 50% of the time my day goes exactly as I described. At other times, something is sure to break the established order. It could be an unexpected illness, nightmares, bad weather, or a host of other problems. In such cases, I manage to intercept only a couple of hours of sleep, and during the next day I definitely need to nap.

How to succeed in such a disorganized situation

We are all different, we have different levels of stress resistance, we cope with uncertainty and chaos in different ways, so it is difficult to say what exactly will be effective for you. However, I would like to share the following tips that I have developed as a caregiver to help you seize the moment and succeed.

Understand Yourself

The most important thing you can do is understand and accept yourself. Be aware of your habits, your ability to deal with failure, and your energy levels. If you are trying to push yourself beyond your own limits, you will most likely only increase your stress levels and be unable to complete many tasks.

As with regular exercise, you can increase your stamina and change your behavior patterns over time by using tools such as exercise, meditation, naps, proper nutrition, etc. to make your life easier. Most importantly, the better you take care of yourself, the better you will take care of others.

Planning and consistency are key

Given the nature of my wife's condition and my daughter's age, I have to be flexible throughout the day. If you're caring for someone who needs order, planning and consistency are your best friends. I have a plan for every day, I regulate it with the help of Internet calendars and various lists. I have smart speakers all over my house so I can instantly access my calendars and lists whenever I need them. I even have a smart speaker in my car.

The system isn't perfect and I don't always see notifications, but it's convenient, it gives me the flexibility I need, and it's important that these technologies are available to those who can help me.

Try to be as efficient as possible

I always try to be as efficient as possible. If I cook, I will prepare food with a margin. If I order takeaway food, I will take a couple of dishes in reserve so that I have something to eat for lunch or dinner. When I go grocery shopping, I stock up on long shelf life products so I don't have to go shopping every week.

Of course I'm a local grower, but I do most of my shopping online, like small items that require a trip to the hardware store, or large purchases like paper goods to stock up on.

I'm still not very good at buying perishable goods, but I've learned not to buy more than I need and less food goes into the trash.

Make a backup plan

To be honest, this is the only recommendation I didn't follow. And it should. I don't have a backup plan.

My sister helps me to the best of her ability, but if I get sick, arrested or abducted by aliens, it's quite possible that there will be no one to replace me right away. I am not at all happy with this prospect, and I will try to somehow solve this problem.

At best, my sister, some select friends or other family member will come to the rescue. Worst case scenario, I'll have to hire an assistant. When I say “worst case”, I mean that the assistant will not understand the day to day procedures, most likely will not be able to look after my wife either and for his daughter, and, most likely, his services will not be cheap.

Conclusion

My best advice is to live and appreciate every day, every hour and every minute as they are, and don't forget to breathe. Enjoy your successes and learn to forget your failures. And most importantly, do not be afraid to seek help from doctors, social workers, relatives or friends. After all, maybe time is on your side.

NPS-EE-NP-00006 August 2020

A simple strategic approach to improve your life

November 25, 2020BooksMotivation

An excerpt from the book “Simple Rules. How to Succeed in a Complex World” will help determine which areas you need to change and what to do for this.

Share

0

Find the main aspect of life that needs to be changed

Most people will not hesitate to answer what strategic improvements they most desire, and the range of relevant life aspects will be unusually wide: from losing weight to romantic acquaintance, from harmony between work and personal life to the accumulation of wealth, from a busy social life and the joys of communication to the opportunity to devote more time to yourself.

All these facets of existence have the only thing in common: the one that is chosen correctly gives rise to a sudden insight: “Here it is, that cherished one that will give me the joy of life, disperse the clouds above my head and make me absolutely happy for a long time.” The strategic aspects of life resonate deeply in the soul, making it clear that it is them that you wish to improve. Here are some questions to help you get started in your search for the strategic aspect of your life.

  1. What aspect of your life do you most want to improve? What are the first three things that come to your mind?
  2. What activities bring you the most joy and a sense of well-being? What should be done to devote more time to these activities?
  3. What aspects of your life cause you the most fear, anxiety or worry? What would help ease these feelings?
  4. Look back at the past five years: do you regret not being able to change something during this time? What would you most regret when you remember your life on your deathbed?
  5. How would a trusted friend, life partner or lover answer these questions for you? (It is very helpful to ask them about this. )

It would be good to pick not one but several aspects of life to improve, because not all simple rules apply equally to everyone. For starters, three to five desired improvements will suffice. The first version of the list usually includes very generalized values, such as family, wealth, and health. This is perfectly acceptable to begin with, but it is easier to spot a bottleneck if you narrow these concepts down to more specific, measurable goals that can expand your arrows.

At this stage, try to be as specific as possible about your desired accomplishments. For example, the goal of "eat right" can be specified: "lose five kilos", "become more energetic", or "control blood sugar levels through diet". As you can see, these are all very different goals, requiring the application of different simple rules.

Find the stumbling blocks on the way to your goals

Having decided which side of your life you would like to improve, move on to the next step - finding a bottleneck. A personal bottleneck, like its "business" counterparts, is a specific activity or decision that simple rules can have the most impact on by widening your arrows.

The bottleneck is the best place to apply simple rules, and the rules applied to it should increase your personal values.

The best personal bottlenecks deserve to be called strategic because working with them will help you create sustainable personal value. Simple rules can be productively applied to dozens of different personal activities, but you will have to spend time and effort to formulate, test and hone these rules. It is most advantageous to direct efforts to that business or decision from which there will be a maximum return.

The following questions will help you identify the most promising candidates:

  • What activities or decisions are preventing you from reaching your goal?
  • Where will the rules have the most impact?

A productive bottleneck should not only create personal value, but also be suitable as a point of application of simple rules. The best candidates are repetitive actions (rather than one-time decisions), then the effort and time invested in the formulation of the rules will pay off in the course of their repeated application.

Good bottlenecks are, for example, the way a couple settles money disputes or the distribution of household responsibilities, as opposed to a one-time choice of a candidate who is worth marrying.

Actions and decisions that you repeat daily or weekly provide the experience you need to evaluate how well the rules are working and adjust them accordingly.

Simple rules work especially well in situations where the number of options outweighs the resources needed to implement them, such as when you're thinking about where to invest your capital, what repairs to do around the house, or what to do with the freed up few hours. Simple rules best guide decisions that require flexibility, such as when choosing a diet or parenting arrangements for your baby. If you have problems with mechanical memory (say, you always forget what things to pack for your business trip), then it is more appropriate to make a checklist than to fence the rules.

Finally, simple rules are great for channeling willpower and are therefore especially useful for dieting, exercising, saving money, and doing other things that involve sacrificing momentary temptations for big long-term gains.

A bottleneck does not need to satisfy all of the listed criteria, but the more criteria it satisfies, the more benefits from simple rules will be. When looking for a bottleneck, remember that you are looking for some kind of stumbling block on your way to achieving one of your personal goals. Here are a few key questions to help you prioritize.

  1. How often do you make such a decision or do such a thing?
  2. Does the number of possible choices exceed the amount of time, money, energy or attention you have?
  3. Does this work require willpower?
  4. Does this case or decision require some flexibility?
  5. Can results be measured in order to test and improve the rules?

After assessing the importance and potential of those cases or decisions that may be particularly relevant to achieving your goals, select a specific bottleneck that you need to expand.

Learn more