Come tax season, many people choose to invest their tax returns in their homes. What’s the primary reason they remodel? According to our research, 48 percent take on remodeling projects that will make their home more comfortable. And while this seems to represent a shift away from remodeling to increase a home’s value, it doesn’t mean one should ignore a project’s ROI potential. Here are a few projects that can make your home more livable and valuable.
While not nearly as exciting as a kitchen remodel, investing in a few key aesthetic upgrades can yield significant returns on your home improvement investments. For example, replacing your front door, siding and garage door can yield some of the highest ROIs. And while neither project is as “fun” as a kitchen remodel, all are smart investments that will improve the look and value of your home. If your exterior could use an upgrade, we’ve got door and siding pros who are ready to help.
Adding a wood deck is an investment that will add value to your home while improving your outdoor living space. The key here is to not over-invest in the project. Composite decking might be more resilient, but with a significantly higher average cost and drastically lower ROI, it isn’t nearly as smart an investment. Find a decking pro.
Besides improving the look and comfort of your home, new windows can have a dramatic effect on your utility bills. When it comes to replacing your windows, you have two choices: wood or vinyl. Both are good investments, though wood windows usually have a slightly higher ROI. Get quotes from screened and rated window pros.
Finally, the room every homeowner dreams of remodeling: the kitchen. You’d be hard pressed to find a home improvement expert or realtor who doesn’t think a kitchen remodel is a worthwhile investment. And, for the most part, they’re right. The key is to invest in the right remodel. You might daydream about upgrading your kitchen with commercial-grade appliances, exotic hardwood flooring, and other costly splurges. However, don’t make the mistake of thinking they’ll return more because they cost more. To get the most bang for your buck go with a minor, mid-range remodel. Want to check out kitchen remodeling costs in your area? Our True Cost Guide will tell you what you can expect to spend.
Last but not least, before starting any remodeling project it’s important to keep a couple of things in mind. One, if you’re planning on moving within five years, stick to smaller remodeling projects as they typically have shorter payback periods. Second, and perhaps more important, never spend more than 25% of the home’s value on renovations.
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