Every homeowner knows that taking out a home equity loan or other second mortgage can be a great way to fund home renovation projects and add value onto a home. (We just did a post this week on how Manitoba’s come to this realization more than any other province in Canada.) But while we might know that projects are good, what projects should you complete first? Which ones will give you the most value for your money? Here’s a quick breakdown on what you can expect to get from your next home renovation project.
Painting
Adding a fresh coat of paint to interior walls freshens up the space and gives it a cleaner, newer feel. Applying a fresh coat of paint to the exterior of the home can add even more value, as it increases the “curb appeal” of the home. Painting is also one of the cheapest home renovation projects you can tackle, and it has the best return – up to 300 per cent!
Kitchen Remodel
Everyone knows that the kitchen is the gathering place of the home – and it’s also the room that’s one of the most expensive to renovate. Make sure to keep the reno in line with the style and design of the rest of the home, otherwise it will only detract from the rest of the home. Return on investment when you redo your kitchen? Anywhere between 68 and 120 per cent.
Bathroom additions or remodels
Adding on an entire new bathroom will definitely give you a better return on your investment; and it’s a must for any home that currently only has one (nearly all homebuyers are looking for a home with 2 or more baths.) Adding a new bathroom will give you a return of 80 – 130 per cent; while renovating an existing one will increase the value by 65 – 120 per cent.
Window and Door Replacement
Don’t focus too much on oddly shaped windows. As interesting as they may be, it’s energy-efficiency and quality that today’s buyers are looking for. Replacing doors and windows can give you a return of 50 – 90 per cent on your investment.
Deck Renovations
If you absolutely must complete work outside (usually indoors adds more value,) make it the deck that you focus on. Whether you’re building an entirely new one, adding on to an existing one, or just making repairs and improvements on it, deck work will give you a 65 – 90 per cent return on your investment.
