Some home improvements / renovations provide more of a payback when you sell the house down the road. Here’s list of the four home improvements which will provide the biggest payback when you sell.
Adding square footage – While this can be a very expensive project, adding to the size of a house can re-coup between 50 – 83% of your initial investment. An income suite is the single biggest way to increase the value of your home. Whether this is converting your basement into a rental, or another floor in the home, an income property will increase your home’s worth. The main reason for this, is that it covers a portion, or sometimes, all of your mortgage payments and results in your home being cash flow positive – which creates real wealth that can supplement your income.
Remodeling your kitchen – one of the most important rooms in the house is the kitchen. It is crucial that you invest in having a modern, fresh and desirable kitchen. Modern cabinetry, under cabinet lighting and new appliances will all significantly increase the value of your home on the market. Remember not to over-do the project though. A million-dollar kitchen in a $500,000 home, won’t be fully appreciated by future buyers.
A bathroom addition – a second room buyers check out, is the bathroom. While re-modeling a bathroom will recoup a lot of the renovation costs, adding a second bathroom to a one-bathroom home, is huge! While you should never compromise bedroom space for a bathroom, try sneaking one in dead-space in the home.
Flooring – Flooring is one of the most important aspects of your house. You will see an immediate rise in property valuation with the installation of hardwood floors. Existing hardwood floors that can refinish are ideal as they are less costly to restore an din higher demand than new flooring materials. For the bathroom, tile will always be in demand and retain value exceptionally well.
If you are thinking about buying a home, or renovating your current home, contact us. We can help you find the best option to finance the project.
Original article: www.genworth.ca