Home renovations are an excellent way to boost property value, whether for renting or for selling. However, these projects require a certain amount of investment, so you have to make sure that you can recoup the money you spent on selling or putting the place up for rent.
If you’re like most people, you would want to get the best value for the cash you’ve put into the project. To ensure this becomes a reality, consider the cost versus the value to determine if the specific upgrade you’re thinking of will give you a good return on investment.
To help you get started, below are five examples of house renovation ideas that will pay off:
1. Better Outdoor Landscape
The curb appeal is one thing that can help you a lot when making a great first impression on potential tenants or buyers. After all, first impressions are made the moment people catch a glimpse of the property exterior.
Real estate experts believe that a stellar initial impression adds five percent to a property’s total value. This means that you should never forgo paving the driveway properly and investing in beautiful exterior paint and a well-maintained lawn.
If you have more than enough funds, you should also consider hiring someone to build a swimming pool or have the outdoor space landscaped expertly to take the property value several notches up.
2. Deck and Other Indoor-Outdoor Extensions
Another thing that can increase the value of a property is an outdoor living space, or areas that are situated outside the edifice but are still connected to it. One great example of this is a deck.
Decks have become useful in making a property more desirable, especially for home buyers or renters who prefer to stay home on their vacation time (a.k.a. staycation). In fact, HGTV says that the addition of a deck allows real estate investors to recoup about 65 to 90 percent of their investment in the renovation project.
To achieve its optimal effect, consider the unique features you want to be included in the design. This includes built-in seating and plant boxes, as well as a fire pit if the local building code allows. If possible, only have builders use high-grade materials to ensure the durability of the deck.
As an investor, you also need to be well-versed on the cost of adding a deck. This will vary widely, depending on the size and style of the deck, the features added, and the materials used to complete it.
3. Kitchen Updates
Believe it or not, the kitchen is as important as the living room or the outdoor landscape in making a good impression on potential buyers and renters. In fact, many people consider it as the “heart of a home.”
This means that any update to this room will benefit your real estate investment. In fact, HGTV sees as much as 20 percent ROI on a kitchen remodel, so long as you keep it in control. In short, the kitchen should not overshadow the rest of the house by being fancier than most rooms and living spaces.
To ensure good returns on your investment, below are some kitchen updates you should consider:
A. Install new flooring material
The kitchen floor is a promising place to start when implementing high-value remodeling projects. In most cases, adding hardwood floors offer a classic appeal to the area. But aside from that, another type of flooring material is starting to gain traction in the real estate industry: terrazzo flooring.
Epoxy terrazzo floors, in particular, are considered the more stylish version of concrete floors. These ares typically used in industrial designs, but more modern residential interiors have also enjoyed its water-resistant and highly durable qualities that pair well with its innate elegance and style versatility.
B. Refresh it with paint
A fresh coat of paint makes the kitchen – or any room, for that matter – look newer than it actually is. However, consider this carefully, as the cost of changing paint you end up not liking for your property can go out of control if left unchecked.
To make sure you get the most out of it, start by thinking of the right color to use. With fresh paint of modern hues on a kitchen, your real estate investment can go a long way, especially since repainting is relatively cheaper than most updates.
Also, consider using low-VOC paint to make your kitchen more environmentally friendly. This can also help you attract eco-conscious home buyers and renters.
C. Energy-saving appliances
Speaking of eco-consciousness, another kitchen update that should top your list of priorities is the inclusion of energy-saving appliances. This can range from an automatic thermostat to a built-in inverter refrigerator.
4. Rethinking Rooms
Although adding square footage can definitely increase your property’s market value, it can be quite expensive to do so. So, instead of adding a new room, consider rethinking the existing ones and reinvent them into something more useful and profitable.
Before you start having walls and rafters demolished, think about the different ways the space can be used. Take into account versatility, as it is believed to have greater appeal to buyers and renters alike.
Basements can also serve as second living rooms, entertainment, and game rooms. In some cases, these can also be transformed into small studio-type apartments for additional tenants.
Attic spaces can also be used as hobby rooms for making crafts, playing games, and the like. If your attic has high ceilings, you can transform it into an indoor playground for buyers or tenants with kids.
Since more companies are now adopting work-from-home setups, you can take advantage of this new norm by converting a room in the house into a home office. Incorporate plenty of workspaces and make sure outlets for electricity and internet are available for easy connectivity.
Of course, this doesn’t need to cover an entire room. Even an unused corner can be turned into a small-but-organized office space with the clever use of shelving and seating that can be folded when not in use.
5. Bathroom Additions and Updates
Like kitchens, bathrooms are considered an area of the house that many renters look at before deciding to sign a lease contract. As such, bathrooms are considered a vital ingredient to a home for sale or for rent.
Be sure to do something about outdated or unattractive bathrooms to avoid turning off potential buyers or tenants. Consider choosing fixtures that give off a more modern appeal, and save on space with multipurpose amenities, like a bathroom storage unit with a built-in mirror.
The Better the Renovation Value, the Greater ROI
Bigger renovations don’t always generate higher returns. When it comes to investments, everything should count, including the cost-effectiveness of an update, as well as the long-term benefit it can provide.
Consider these house renovation ideas to make sure your real estate investment will pay off.
Ralph El Eid is the Business Development Manager at COLORTEK – Wall & Floor Fashion. EQUIPAINT is the franchise owner of COLORTEK in Dubai (U.A.E.) and Doha (Qatar); an international paints manufacturer specializing in the widest range of decorative paints and seamless concrete & resin flooring, with a unique showroom concept, and thus an ideal destination for homeowners, consultants, architects, interior designers and paint applicators.