According to RE/MAX 2021 Renovation Investment Report, up to 50% of Canadians changed their home layout, 70% redesigned their kitchens and bathrooms, and 55% renovated their outdoor living spaces. That highlights a hugely significant increase in renovation demands, particularly since it was a COVID year.
But there was one number that stood out the most. It was the percentage of homeowners who renovated their homes to get some money back from their investments. It was a whopping 60% that deemed their renovations to get a higher return on investment (ROI) when they sell their property in the future.
Which begs the question: which renovations are the ones that would instantly transform a home while getting it more bang for your buck?
We have the list of the best home improvements in 2021 that give you a higher ROI.
Five Best ROI Home Improvements
The big daddy of them all, but the one that gives the most bank for your investment. Kitchen renovations might be expensive, time-consuming and difficult to administer, but once you complete it, you’ll get a substantial jump in ROI.
Depending on how you upgrade your kitchen, you can expect to get between 75 to 100% back on the cost. That’s a substantial amount that dwarfs other home renovation projects.
The most important thing is to consider upgrading the key ‘essentials’ of your kitchens, such as the flooring, cabinets and appliances. Opting for marble countertops, splashbacks, and quality flooring can really elevate the status and standard of your kitchen to prospective buyers.
Replacing the Doors & Windows
Doors and windows are often overlooked when conducting renovations, but they can prove to be significant in boosting your home’s potential resale value. There are a few reasons why this is the case:
- Doors and windows can add a style and decor to your home, particularly the entrance door (make sure it’s distinct from the rest)
- They can also work to add a unique touch to specific rooms in the home.
- Windows can let in more natural light to the home, enhancing its curb appeal.
- Both newer door and window models are always energy efficient.
That last point is the most significant. Buyers and investors look kindly on properties at doors and windows that reduce energy consumption and bills while ensuring the home maintains a comfortable environment. In many cases, new windows and doors can see a return of about 75% – a great choice considering you’ll also save on those pricey electric and gas bills.
Upgrading your home’s exterior can prove essential when it comes to transforming its curb appeal while increasing its resale value. It can include a huge array of upgrades such as:
- New garage replacement, which can cost around $4,000, but you’ll most likely get all the money back from the purchase
- Installing manufactured stone veneer (a fake stone that’s engineered to look like natural stone) across the section of the home. It can be pricey – accumulating at around $10,000 – but you’ll probably get around 90% back on it.
- Siding replacement. Another massive job that can set you back, but the added protection that comes with it can enhance your property’s value. Expect to get roughly between 50 to 75% back on it.
Of course, there’s a lot more you can do for your home’s exterior. There are two massive projects that you can undertake if you’re game…
A Roof Replacement
Roofs are a pricey project, but boy, chose the right roofing style and material, and you’ll get it back when you sell your property.
The pricing really jumps up because of the workload required by the roofers to remove your old roof and replace the new one. There could be asbestos, mould or leaks, which could make the project take longer.
There’s also the materials themselves, which can range significantly. If you were to go with asphalt or metal, you’d get a cheaper deal, with Remodelling Magazine saying it will cost you “between $5,000 and $12,000.”
However, if you choose slate (the best of the best), you’ll be paying a lot more.
According to Modernize, “you can expect to pay $9 to $16 per sq. foot or $900 to $1,600 per square” for slate, with the roof project costing “between $11,550 to $24,000 depending on the slope, pitch, and size of your home’s roof.”
But the boost in value is huge. You’ll most likely get back 80% or more while truly transforming the quality and appearance of your property.
This point can be best summed up by the RE/MAX report: “roofing upgrades and landscaping are two of the top renovations that can be done relatively quickly to improve ROI.”
What does that mean?
Landscaping your property and styling it in the right manner can really add a WOW factor to your proceedings. So what does that include?
Simple: adding a patio, creating unique layouts for your landscape, painting the trim of your home’s exterior (such as the doors and windows), add lights and special features, such as fountains or ponds.
But the best tip to managing all this is to remove the clutter and keep it simple. Make a flow and structure to your home’s exterior layout so you can truly give a unique touch.
While this might be expensive and will take up a lot of time, you can expect to get back a significant amount of money back on your investment. Anything between 50% plus, depending on what you’re installing.
Make Your Investments Count
If you’ve got a limited budget, the most important thing to do is make your investment count. Focus on the projects that you can afford and you know will deliver the most bang for your buck. Your best bet is to speak to your local real estate agent for more advice or consult a home renovation company to see where improvements can be made. Compiling information and crunching the numbers can determine the best investments you can make for your home.