13 Mar Do Home Improvements Really Increase the Value of Your Home?
Whether you’re a Canadian homeowner getting involved in a home improvement project, or an investor, with the evidence showing that doing so can have numerous benefits, it’s little wonder so many Canadians are starting such projects. For those wishing to improve their home for livability purposes, home improvements can have an immensely positive impact on daily life, whereas for investors, renovations can help improve a property’s salability and increase its value.
That said, with construction costs on an upward trajectory, both homeowners and investors need to strategically plan a renovation project, and give careful consideration to what rooms or area of the property they want to renovate, and why.
Let’s look at some of the most popular home improvement projects, and what rate of return they typically offer:
Bathroom
Renovating the bathroom is a popular choice, and as this room is frequently used by all members of a household, improving it can really only have positive consequences for both homeowners and investors.
The average bathroom remodeling project costs between $150 and $250 per square foot, which is costly to say the least, but it typically offers one of the highest rates of return, at 70 to 100%. Spending $11,000 on such a project could see you increase the value of your home and enable you to earn that full amount back.
Kitchen
Outperforming all other renovation projects, kitchen remodels can add over 12.5% to a property’s value, and are often seen as being the single most significant value-adding upgrade.
A fresh coat of paint
Much less costly than renovating a room, repainting a home can add a lot to a property when it comes to selling it, and with an average return rate of 50-100%, a professional paint job can add a lot to a property, with minimal investment.
Understanding the market
This is vital if you’re to make an informed and rational decision about making home improvements in the hope of increasing the value of your home, and conducting extensive market research is the best way of ensuring that your remodeling project is worth the added expense and effort.
At the end of the day, a home improvement project designed to improve your quality of life while in your own home, can never be a bad decision, provided it’s successful. When it comes to increasing the value of a property though, you’ll need to think and spend wisely in order to get the highest return on your investment.
If you’ve recently carried out some home improvements and are looking to sell your home, reach out to a qualified real estate agent today. If you’ve found a newly renovated property that you can see yourself living in, schedule an appointment with a local mortgage broker to get the ball rolling, and take the first steps towards purchasing your dream home.