The best home improvements to increase your ROI.
Posted on 29th June 2023 at 12:30
When working on home improvements, choosing where to start is often the hardest part. With all the possibilities, how do you pick a project that increases your home’s value without it turning into a money pit?
There are many cheap upgrades you can do to each room of your home to add value. However, more large-scale projects often give you the best return on your investment. How much you spend on your home improvements depends on what your budget is and what you are looking to accomplish.
What is ROI?
To calculate the ROI (Return on Investment) of your home improvement project you first must calculate your net profit. Do this by taking the estimated income from a project and subtracting the estimated costs to complete it. Now divide your net profit by your estimated costs and multiply it by 100 to get your ROI percentage.
(Net profit/Estimated costs) *100 = ROI.
For example, let’s say you estimate the total cost of your project to amount to £30,000. After the project is complete, you decide to sell your home. The increase in its value after the project results in a net profit of £50,000. ROI= (£50,000/£30,000) *100. In this example, the ROI of your project is approximately 166.67%. This means, for every pound you invested in the project, you gained a return of £1.67.
Increase the value of your home room by room.
Updating your kitchen or bathroom are some of the most cost-effective home improvements you can make. This a major selling point for buyers. Updating your bathroom gives you the opportunity to add water-saving fixtures, reducing future utility bills. Simple things like refacing cabinets with new doors, some fresh paint, or updating your worktops makes a huge improvement.
The addition of a conservatory also increases the ROI of your property. A conservatory is one of the more popular home improvements; extending your space with an impressive new room. They give you the opportunity to create a modern and stylish space that can be used for anything you want it to be. Conservatories are more affordable and less hassle than building an extension. This means you could add value to your home and receive all the benefits of an extension while spending less.
Since the pandemic, there has been an influx of people working from home. Because of this, buyer demand for home office space has greatly increased. So, if your home has the space for a garden office, this could increase its value. A garden office creates both an attractive focal point and a practical addition to your outdoor space.
Upgrading your homes exterior to increase your ROI.
You can easily increase your home’s value by updating the outside of it. If the front of your house is already in good shape, consider replacing your exterior doors or focusing on back garden projects.
Exterior door replacement:
A new front door can instantly increase your homes curb appeal and attract potential buyers. When thinking of upgrading your front door, there are a few things to consider: Is your house easy to find? Are the house numbers prominent? Is the pathway well lit? Complete the look with flowers and an inviting doormat to create the ultimate warm welcome for your guests and potential buyers. There is also value in a front porch installation. A porch can increase your homes curb appeal and add on to the usable surface area of the property.
Similarly, garage door replacements are a cost-effective home improvement project that provides significant ROI. A new garage door also increases exterior aesthetics and increases your homes energy efficiency.
Another aspect of a home that can provide a high return on investment is upgrading your outdoor space. This area has become increasingly important in recent years as families are spending more time at home. The pandemic sparked a “race for space” which has seen buyers place more importance on homes having gardens during their property search. So, making improvements to your garden space and ensuring it is well kept creates a huge selling point to buyers.
Garden privacy has become an obsession for many as more of us are spending more time outside in the warmer months. If your garden is overlooked by your neighbours’ homes, this can be off-putting for buyers and can even affect your property’s value. You can effectively provide screening with cleverly placed plants, however, a veranda or pergola over a patio can provide the best of both worlds: privacy, shelter, and shade.
Of course, a lot can also be done on a smaller budget. Making sure your garden is well-kept by adding simple things like potted plants and small solar panelled lights around your garden can instantly increase its appeal. While it may not directly add value to your home, a poorly presented garden that looks like it requires a lot of work can be hugely off putting to buyers. A ‘move straight in’ house that is decorated and finished is a huge selling point, and this is the same for your garden. By adding these simple features, you can make your garden feel ‘complete’ when buyers view your home.
If you are a homeowner looking for home improvement services that will increase your ROI, contact Alternative Roof Solutions to receive a free no obligation quote today.
If you would like a chat with our team, call us on 01604 947 146.
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