6 Home Improvements for Higher ROIs
Here are our suggestions for home improvement projects that are time-tested and proven to bring you a handsome Return on Investment (ROI) for your property:
- Building a Deck
Decks have gained immense popularity in recent years and are ideal for BBQing, entertaining, or simply relaxing in the sun. They are highly sought after and can make a substantial impact on your home’s ROI when you list it for sale. In New Zealand, a basic deck and outdoor landscape costs, on average, between $10,000 and $20,000, depending on the costs of materials and labour in your region.
Compared to other home improvement projects, adding a new deck brings tremendous value to your home. In fact, according to Remodelling Magazine’s Cost vs. Value report in 2017, homeowners can expect an average return of 80% on a new wooden deck. This is much higher than the average return on interior renovations, such as living room additions and bathroom remodels.
- Bathroom Remodelling
Although the return on a bathroom improvement is lower than a new deck, it is still a great project to consider. Whether you want to remodel your bathroom for increased comfort and functionality or simply to increase your home’s selling price, this move is worth making. The average cost for a bathroom remodel in New Zealand is around $10,000 but this may vary depending on the region and quality of materials. You can also make minor improvements, such as replacing outdated bathroom fixtures, for significantly less. On average, you should expect a return of approximately 78% at the time of resale.
- Kitchen Upgrading
Here, I am not referring to your dream kitchen or some extravagant design you saw on Pinterest. Those kinds of massive kitchen remodels don’t yield large returns on investment. Instead, scale back your ambitions and plan for a mid-level remodel, somewhere between $20,000 and $30,000 (especially if you plan on selling your home in next couple of years). This may include items such as new flooring, new or resurfaced cabinetry, new countertops and updating appliances with more cost-effective and energy efficient models.
- Adding an Attic
This can be tricky due to particular code restrictions about what constitutes living space, however, this is home improvement project worth investing in. While building an attic can be quite expensive, sometimes as high as $65,000, it really adds a great deal of living space to your home. Reportedly, 95% of homeowners in New Zealand who added an attic don’t regret their decision. As per the Remodelling Impact Report of 2015, homeowners can expect around 60% return on this improvement.
- Finishing Your Basement
Basement remodelling is a cost-effective way to add more usable space to your home without building an expensive addition. Basement remodels often include creating a room for family movie nights, band practices, slumber parties, gaming tournaments, neighbourhood get-togethers, a private office or more storage. You may even consider adding a second bathroom for guests and visitors. The Remodelling Cost vs. Value Report of 2017 states that basement remodelling is one of the best home improvement projects for yielding a high return on investment, sometimes as much as 70%.
- Garage Door Replacement
Just like a front door, replacing your garage door is a quick and cost-effective way to earn a significant ROI. A new garage door doesn’t only increase the value of your home, it can also greatly enhance its curb appeal. Houses with recently replaced garage doors tend to sell faster and for more money. The cost of a new door varies with the average lying somewhere between 1300-15000 for a single garage door, and $2000 and $4200 for a double garage door. These prices are determined by the size of the door, the quality of material used and the region you live in. On average, the ROI for a mid-range garage door replacement is close to 88%!
We hope that before selling your house, you embark on one or two of these home improvement projects to maximize your resale value. We would love to hear your feedback, especially those who are putting their homes on the market in the coming year.
MC Construction has completed thousands of garages builds and refurbishments in Marlborough and Canterbury. Call 0800 14 74 33 to learn how we can assist you in your upcoming project or click here to Make An Enquiry.