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Five Smart Moves for Home Improvement
How to get the best return on your money
Article contributed by Affinity Federal Credit Union from their quarterly magazine, Affinity Connections. For more information about Affinity or to view Affinity Connections in its entirety, visit www.affinityfcu.org/ connections. |
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Thinking about giving your home a much-needed facelift? You’re not alone.
According to the Commerce Department, home improvement
spending jumped by 21.3 percent in the first 10 months of 2009 compared to 2008.
Given the current real estate market, that may not be surprising. With this in mind, which home improvements
deliver the best return on your investment (ROI)? That’s the question we asked the Home Finance Consultants at Affinity Federal Credit Union.
Top Five in ROI
The five smartest home improvements based on ROI are:- DECKS
. Decks are the perfect place for most homeowners to relax and entertain in the great outdoors. This popular feature with homebuyers is available in a wide variety of materials, from natural wood, composite, vinyl, plastic or aluminum, with some requiring more upkeep than others.
If You Spend: $10,347
Resale Value: $8,835
ROI: 85.4 percent
- SIDING
. Not only does the exterior of your home keep you warm in winter and cool in summer, it presents the first impression to your neighbors and potential buyers. Therefore, the right siding can really update the look of an old house – while keeping you nice and cozy.
If You Spend: $9,910
Resale Value: $8,245
ROI: 83.2 percent
- KITCHEN
. The kitchen is the heart of the home, and the place family and guests always tend to gather. From counters to cabinetry, and all of the latest appliances, this is an investment that’s sure to pay off.
If You Spend: $21,185 (minor) or $55,503 (major)
Resale Value: $17,576 (minor) or $43,363 (major)
ROI: 83 percent (minor) or 78.1 percent (major)
- BATHROOMS
. Today’s bathrooms are spacious sanctuaries where you can soak away the worries of the world. Your money will never go down the drain here, especially if you are updating from one bathroom to two or three.
If You Spend: $15,789
Resale Value: $12,366
ROI: 78.3 percent
- BASEMENT
. The basement is a great place to expand your living area. Whether you’re creating a home theater or children’s play room, finishing this space will definitely pay off.
If You Spend: $59,435
Resale Value: $44,661
ROI: 75.1 percent
Smaller Returns
Some renovations are not such good investments. Remodeling magazine lists home offices, custom spaces such as wine cellars, swimming pools and sunrooms as
some of the renovations with the lowest return on your investment.
Beauty is in the Eye of the Beholder
Of course, just because a remodeling project doesn’t make your home more valuable to a prospective buyer doesn’t mean it’s a waste of money. If the renovation is something you’ll enjoy and use, then it can be priceless. Consider what you like and how long you plan on living in your house, and you can make the best decision.
Sources:
www.demesne.info/Improve-Your-Home/Improvement-ROI.htm
www.frontdoor.com/Home-Finance/5-Worst-Home-Updates/54705
April 16, 2010
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