|
Siding
Replacement (fibre-cement or foam-backed vinyl).
With the economic slump, home buyers aren't being dazzled by bells and
whistles as much as they are improvements that will ensure lower repair and
utility bills. Although replacing current siding with fiber-cement has lost
value from 2007, it still nets an astonishing 87 per cent ROI. If you prefer
a foam-backed vinyl product replacement instead, you can still look to recoup
80 per cent of your cost. Window Replacement (vinyl or wood). Windows are not
only an aesthetic feature. For most homeowners, they represent one of the
easiest ways to lower home heating and cooling bills. By replacing your
current windows with more efficient vinyl or wood ones, you can save on your
utility bills, attract future home buyers and net a nearly 80 per cent
(vinyl) or 77 per cent (wood) return on your investment. Bathroom Remodel.
Depending on the size and amenities of your desired bathroom, you could
expect to pay more than $50,000 to tear out walls, repair joists and wall
studs, change structural elements and make major layout changes, such as
switching a toilet and shower. However big the price tag, you can still
expect to recoup nearly 71 per cent of the cost (which would be $36,400 if
you have a $50,000 bill) when you go to sell. This project increased its
value since 2007, while its sister project — adding a complete bathroom —
fell in value. Major Kitchen Remodel. Kitchens are typically the most
frequently used room in a home, so it makes sense that investing money here
is going to pay off when it comes time to sell. While a major kitchen
renovation is usually the most time-consuming and expensive home improvement
job (averaging more than $110,000), it's also one of the most profitable.
Regardless of the size of your financial layout, you can expect to get a
nearly 71 per cent ROI. Deck Addition (composite product). With families
cutting their entertainment budgets, they're spending more time at home, so
it makes sense that adding a deck (composite, not wood) is a good investment.
You can plan on recouping 63 per cent of your total job cost to boost your
home's value by nearly $24,000 if you paid the average job cost of $37,000. Mid-Range
Projects While
all of the mid-range projects dropped in value versus cost since 2007, there
are still numerous projects that will net you a significant ROI. Here are a
few of the best bets for your money: Deck Addition (wood). If your bank
balance can't swing the higher price tag that comes with composite decking,
you may still be able to afford a wood addition on to your home. While a wood
deck would cost you, on average, in the neighborhood of $10,000, the resale
value it will add to your home is more than $8,600 — an 81.8 per cent return
on your investment. Siding Replacement (vinyl). Fibre-cement
or foam-banked vinyl are often more preferable siding upgrades, but getting
vinyl siding replacements instead is still a good choice. You can recoup nearly 81 per cent of your cost
which, if the job cost you more than $10,000, means you could add more than
$8,200 to your home's value. Minor Kitchen Remodel. With
belt-tightening in style, people are turning to minor kitchen improvement
projects instead of major overhauls. It turns out that that choice is not
only frugal, but financially wise. While major kitchen remodeling jobs can still, on average, return a
nice 70 per cent ROI for homeowners, minor kitchen remodeling jobs net an
even higher 79.5 per cent return. Attic Bedroom. Anytime you can add
bedrooms, you're going to add to the overall value — and listed purchase
price — to your home. If your attic's dimensions allow you to convert it to a
bedroom, you may want to consider investing the money to do so. You'll add
some sleeping space and net a nice 74 per cent return when a new buyer puts
your home under contract. Basement Remodel. If you're fortunate enough to
live in an area with a water table high enough to permit basements, you
should think about squeezing all the value you can out of it. By remodeling
and finishing a previously-unfinished basement you can expect to get nearly
73 per cent of your investment returned with a higher list price, come time
to sell. Conclusion
If
you have savings or access to reasonably-priced credit, it's worth it to
consider home improvement projects that will produce the best return for your
time and money. Make sure you work with a reputable, licensed contractor (to
avoid costly errors or budget overruns), and before you undertake any project
it's a good idea to check and see if it could significantly increase your
property tax bill. While it may still make sense in the long-run to undertake
the project and add overall value to your home, you may need to make a few
budgetary changes so that you don't get caught off-guard when the tax bill
comes. Source
- CBC News (Consumer Life) |