Ideally every home renovation project you choose to undergo will satisfy a number of different requests at the culmination. Specifically, you should enjoy a 1) improved quality of living while hopefully 2) improving your energy efficiency, and 3) making your home more valuable.
One of the hardest things for (some) homeowners to come to grips with is putting money into renovations now while also keeping an eye on the home’s market value for down the road. Is a finished man cave or a patio hot tub going to improve your quality of living now? Definitely. Is it going to impress buyers in 10 years? Not necessarily – but maybe. Therein lies the fun in home renovating.
It’s your money and it’s your house so you should always invest where you see fit. For those that may be indecisive however, here are some project types with typically the best ROI.
Where You Can Make Your Money Back Monthly
Many of your home renovation projects aren’t going to show any ROI until you list on the market. Of course this doesn’t mean you can’t enjoy them in the meantime. That being said, there are also projects that can pay you back monthly by improving your energy efficiency. An insulation upgrade, for example, might not be a ‘sexy’ project but it will lower your heating and cooling bills – giving you essentially free money for those ‘wow’ renovations.
The Kitchen or Master Bedroom
The two most important rooms in your home are your kitchen and master bedroom. When you chose to invest in these areas of your house, you’re greatly improving your market value. Flooring is always a great option but knocking out walls to expand these spaces might be your best use of budget.
Where You Can Expand Your Outdoor Living Space
Taking a ‘dead’ outdoor areas and turning them into something functional is another great use of your budget. A plush lawn for example offers nice curb appeal, but a patio, deck, outdoor kitchen, pergola, etc. offers much more value to your property comparatively. These projects expand your home’s living space often times without an increase in property taxes like a home addition would do. These outdoor areas don’t require electricity or HVAC (and actually save you from using it when being indoors) so they provide value in multiple ways – including patio parties.
Where You Can Turn Storage Into Function
Taking an attic and turning into a bedroom or a home office is a great example of ‘creating’ function. Remodeling an unfinished basement into a rec area is another prime project that expands your living quarters without increasing your home’s square footage.
When you focus on renovation in these areas, you’ll not only be satisfied with the project now, you’ll be extra happy when you decide to refinance or put your home on the market. There’s really no reason that with maintenance and upkeep your home can’t go up in value every year – but with a renovation that market presence can improve drastically.