Home renovation projects were all the rage over the past two years, with rising valuations, low interest rates, and record cash-out refinancing all coming to fore. With the right planning and approach, such renovation projects can substantially enhance the value and longevity of your property, but all too often homeowners focus merely on aesthetics, without giving much thought to functionality and value addition.
When it comes to renovations that will add the
most value, there are a few tried and tested best practices that can
fundamentally enhance quality of living, as well as the resale value of a
property. In this article, we cover some ideal options for homeowners to get
the most bang for their buck.
Consider Taking Out A Home Loan To Help With Your Renovations
For additions to your existing property, it makes great sense to take out a home loan, and unlock its unencumbered valuation. Getting approved for such loans is quite simple and straightforward, with plenty of options such as the home equity loan, or home equity lines of credit (HELOC), and even the FHA home renovation loan by the Federal Housing Administration available for homeowners.
Instead of spending your own hard earned
savings on renovation projects, it makes great sense to leverage on borrowed
money, as real estate always generates better returns relative to interest
rates.
1.
Create An Addition
Investing in a project that results in an increase in your total built up area is a sure shot way of increasing your home values. This can include an additional bedroom, a guest room, a patio, or anything else that increases the overall floor area while adding functional value to your living space.
While this seems quite straightforward, such
projects can go just as wrong, ruining livability and aesthetics without due
planning and consideration.
2.
Bathroom & Kitchen Remodelling
Beyond additions to the floor space, the next most ideal undertaking that stands to add the most value is kitchen or bathroom remodeling. These are two essential cornerstones of a household that have the tendency to deteriorate fairly quickly.
Investing on their renovations doesn't just
improve your quality of life, it can help mix leakages, or issues that could
hamper the longevity of your entire house. A good looking bathroom or kitchen
stands to substantially enhance the resale value of a house.
3.
Develop Your Basement
In most American homes, the basement is a
waste of space, used to store things people don't need or ever use, essentially
turning into a host for bugs, bacteria, and diseases over time.
With the right approach to your basement, you can increase the overall usable square footage of your house, enhancing its appeal, and valuation to potential buyers.
According to Renovation Magazine, investing in
basement renovation can result in a 75% return on investment, within a
relatively short period of time. This essentially makes it a storehouse of
value that is just waiting to be unlocked.
4.
Amplify Outdoor Spaces
While aesthetics add little value in-terms of livability or quality of life, there are certain external and outdoor features that undoubtedly enhance resale values and saleability. This can be something as simple as enhancements to your backyard, porch, or patio, and even something lavish as a personal swimming pool.
Keep in mind, however, that any such decision
comes with its own share of baggage. A swimming pool is often very expensive to
maintain, and certain types of shrubbery in your front or back yard can give
rise to certain types of pest and rodent infestations that you will have to
deal with going forward.
Final Words
There is no shortage of funding options for home renovations, but it
takes considerable planning and analysis to choose the one that perfectly
aligns with your home and its overall value proposition.
