by futurist admin2 
As a property owner and investor, you have to be aware that it’s important to choose any type of home renovations carefully. Any money you spend on one upgrade means you spend your fund for some thing and you will not have it for another type of renovation or even for another property investment , so it’s essential to focus on the renovations as an investment and find out which type of renovation will deliver the highest return on you.
This applies whether you’re in the business of renovation the propertiues for your clients or you are a home owner wants to add value to your aset to have more mony in your pocket in the end of the day you decide to sell it or exchange it with another property.
On the other hand you have to undrestand that , the area and community you are living have some times significant affect to the priority of renovationt ypes , in some locations some type of outdoor renovation wil affact your ROI positivly and some may affect it negativly.
“To financially benefit from a home improvement project, you need to keep potential homebuyers in mind “While updating a kitchen should increase your sale price, a pool can actually deter families with young children or those who are looking for less maintenance.
For Canadians looking for more general guidance on where to focus their home projects, the vast majority of surveyed experts recommended interior renovations (95.0%) over exterior renovations (5.0%).
Curb appeal is important but more time is spent indoors at the open house and that is where buyers typically fall in love with a home,” added Storey. “When renovating with the potential to sell, the most important thing to remember is to use colours and materials that are popular and not too personal.”
The survey showed that prospective sellers are willing to invest less than 2.5 per cent of a property’s value on home renovations prior to listing their home, which represents an investment of up to $31,070 on a property valued at $1,242,793 – the current median home price in Canada.
When asked which generation is the most likely to renovate their home, 45.1 per cent of surveyed experts said baby boomers, as many are planning to sell and downsize. They are also most likely to have the funds needed for a significant renovation.
Baby boomers run the risk of their property selling for a lower price or languishing on the market for longer than expected if they held their property for a long period of time without updating periodically,” said Storey. “Although many buyers can see themselves making home improvements themselves, its very hard for a buyer to get excited or imagine living in a space that is run down or the decor reflects another generation.”
But in overall there are common renovation ideas which have better ROI as well as better attraction for buyers and induce them to consider the home as one of their most serious options.
To give you a sense of where your renovation budget must spend, here are 10 home projects with the highest return on investment, according different research and investigations.
- A kitchen can be a home’s main selling point and doing a Kitchen renovation can have a potential increase to home’s selling price up to 12.5% , it means on a property valued at $1,242,793 ( the current median home price in Canada) after doing a major kitchen renovation , your home value will increase for about $155,000
- Bathrooms are another important part of homes which can be another home selling point and depend on type , size and material use for renovation an 2.5% to 12.5% price increase is expected.
- Changing a unfinished basement to a finished one , with increasing area of living or recreational space, depend on the size and material can increase your home value for 2.5 to 12.5%.
- Making energy efficient renovations like changing the windows and upgrading the heating/cooling system will affect your home value for less than 10%.
- If you change your basement to a basement apartment and use it as a space for renting and creating stream income you willl have another 10% increase in your property value.
- Interior painting , is another selling point but if you decide to change interior painting , use the colors which generally attract the buyers not the colors that are your personal favourits . an interior painting can increase your home value up to 7.5% .
- Landscaping is an important starting point of view for prospects and buyers , first impression of buyers will start in front yard .so a beautiful landscaping can add value to your property for about 7.5%
- Exterior painting can affect the value of your home for maximum 5%.
- Building a brand new deck or upgrading the existing deck can increase the price and value of your home for maximum 2.5%.
- Building a new pool or renovating existing pool may not be interesting for some buyers. In overall your home value will affect the value of your home for less than 2.5% .
