Are you ready to upgrade your kitchen or maybe turn your basic bathroom into a luxury spa? Well stop right there. Before you dive in, you’ll need to know which projects give the best ROI (return on investment). Knowing this will help you plan and make better choices for your home’s value.
What the best investment? Kitchen renovations, basements, and attic spaces are the big winners here. These renovations can account for as much as 10% to 15% of the total value of your home, according to CNN. Surprisingly enough, bathrooms are slightly behind, accounting for only 5% to 15% of total property value. However, smaller baths like powder rooms or half baths even contribute less even though they make a huge difference when it comes to functionality. Take these percentages into account and other knowledge that you can find, as guidelines when planning for home improvement projects. If your living room or bedroom is screaming for a facelift and so dated that you can’t handle even one more day, your happiness can (and should) trump ROI. When it comes down to it, you’re the one living there.
Americans love their kitchens and especially kitchens that have been renovated to include the most up to date gadgets. A typical kitchen makeover cost just under $30,000. What does this include? This includes flooring, new appliances, lighting, cabinetry, countertops, and of course labor. It’s a hefty chunk of chain but can really make all the difference.
According to an article from consumer report, they say the average bathroom renovation comes in at about $14,000 to $16,000 (including labor). The bulk of the cost are due to the cost of cabinets, plumbing and plumbing fixtures, and flooring.
We searched the web and here’s a very general rule of thumb to aim for when budgeting for new projects:
- New roof — $18,000
- New vinyl siding — $12,000
- Basement remodel — $50,000
- Deck addition — $10,000
- Attic bedroom — $50,000
These might be some pretty heavy feeling numbers but you’re in luck; there are places to pinch pennies without sacrificing quality. One of the biggest ways to save is to make it a DIY (do it yourself project) and do as much labor as you can yourself. There are YouTube tutorials for just about everything. Take advantage of DIY moments like painting or hanging wallpaper for sure, if you really want to save some money then research and learn something new like installing a new light, laying hardwood or installing a new faucet. However, if you’re uncomfortable definitely reach out to a professional, especially areas that involve major structural changes.
Once you decide on what to do, start a separate account in your budget to avoid putting anything on credit or going into debt. Not only will you avoid costly interest payments, it forces you to take your time and think things through. You won’t be tempted to go on a shopping spree right then and there. The bigger your goal, the more time you’ll need to save for it (obviously). Start making budget adjustments now!
Your home is probably the biggest investment you own and you owe it to yourself to make improvements that will increase its value as well as your enjoyment.