Getting the Best ROI with these Home Improvements
Most homeowners assume that any improvement they make to their house will increase their comfort and enjoyment of the home as well as its curb appeal, thereby providing a return on their investment (ROI). Unfortunately, that’s not always the case. One popular misconception is that bathroom remodels provide a good bang-for-the-buck, but they actually provide a very low ROI.
According Remodeling Magazine‘s 2016 Cost vs. Value report, the 30 most rewarding home improvement projects brought in an average of 64.4% return on investment for homes that were sold within one year. Depending on what region of the country you live in, certain improvements can be better investments than others. Home improvement experts agree that the following four home improvements provide the best ROI in various parts of the country. So, before you apply for a home renovation loan, here are some tips that you should consider.
#1: Fiberglass insulation in your attic insulation
Due to its excellent energy efficiency, fiberglass attic insulation tops the list of valuable home improvements throughout the country. In fact, the same report found the national average ROI for a fiberglass insulation upgrade to be 116.9% – which makes this an improvement that more than pays for itself. The fact that the cost of this project is (on average) less than $1,300 makes it even more attractive to homeowners.
#2: Manufactured stone veneer
Manufactured stone veneer is a project that not only drastically enhances a home’s curb appeal by replacing 300-square-feet of vinyl siding from the bottom of a home with manufactured stone veneer, but also improves its efficiency due to the water-resistive barrier over sheathing, a half-inch mortar scratch coat and setting bed and corrosion-resistant lath and fasteners. An average 92.9% ROI – the second highest of the projects measured – is proof that this project is popular in all regions of the U.S.
#3: Garage door replacement
Coming in at number three for ROI is the garage door replacement, which involves replacing an existing garage door(s) and tracks and installing a new door(s) with galvanized-steel tracks. Homeowners can reuse their existing motorized opener, if they have one. Midscale doors provided an average 91.5% return, while upscale replacements returned slightly less at 90.1%. While this project fared well around the country, it saw the best ROI in the South at 97%.
#4: Steel entry-door
Replacing your entry door with a 20-gauge steel door with dual-pane half-glass panel, jambs, and an aluminum threshold is a project that yielded a 91.1% return on average throughout the United States. For maximum ROI and curb appeal, make sure the door has a factory finish with the same color on both sides.
The bottom line is if you plan on living in your home far into the future, opt for the improvements that will bring you the greatest amount of enjoyment. However, if you’re thinking of selling, focus on those upgrades that will provide the greatest ROI. Either way, a home equity loan is often the first step to making these projects a reality.
For more information on home renovation loans call Cilffco Mortgage Bankers at (516) 408-7300 or contact us to schedule a free consultation.