"Despite the rebound in home prices, many homeowners are still left with negative or limited equity," according to the 2015 State of Housing report by Harvard University’s Joint Center for Housing Studies. So it's no surprise that homeowners are paring down their home improvement plans, since a major mechanism to fund these home improvment plans is unavailable. But even on a lean budget, paying for a remodel can still be a great investment if it’s done wisely. Here are 7 home renovations that are likely to give you the greatest return:
Remodeling your kitchen has overtaken the family room as the heart of the home in recent years, and that’s why it’s always a good renovation bet, according to Remodeling Magazine’s annual “Cost vs. Value” survey. Adding new, energy efficient appliances can pay off in the form of lower utility bills as well as greater resale value.
Even just adding new faucets, light fixtures and a fresh coat of paint can help fix up a tired bathroom. In fact, while you might enjoy upscale extras such as heated towel bars and floors and high-tech showerheads, they’ll likely yield less return on your investment. Paying for a bathroom remodel isn't as hard as you may think, and the payoff could be pretty big in terms of the equity you add to your home.
3. Deck addition
Decks are a cost-effective way to add to value to your home, making it feel larger for not a lot of money. Consider using more expensive but maintenance-free composite material instead of traditional redwood decking.
4. Siding replacement
This major facelift is consistently ranked among the top projects for return on your investment. If your home’s exterior is looking a little dated, new siding can boost curb appeal tremendously.
5. Window replacement
If a siding replacement is an extreme makeover, consider window replacement an eyelift – which can largely pay for itself upon resale.
6. Attic bedroom addition
An unfinished walkup attic can be like free money waiting to be claimed. Turn that space into a cozy master retreat and boost your home value instantly.
7. Whatever makes you happiest
Life’s not all about making money, is it? People are spending much of their free time at home these days, so if a home improvement project makes your house more comfortable for you and your family, that can be priceless.
In addition to home renovations that provide ROI, sensible home improvements may also improve the equity in your home. You may also be interested in reading these 10 home improvements that will provide a return on investment or these 10 remodeling projects with a great ROI.