Property Management

Two Things to Maximize Your Return on Investments

By August 4, 2021 No Comments

When looking to try and find that balance between cost and ROI (Return on Investments) on home upgrades, every investor needs help. When looking at the available options for interior improvements, two of the first areas to focus on are the kitchen and the bathroom.

Based on the information given from Remodeling’s 2015 Cost vs. Value Report, kitchen remodels yielded a 79% return on investment, the best compared to any other room in the house. Bathrooms came in second, yielding a 70% return.

Updating any kitchen can be anywhere from the smallest tweaks to a complete overhaul. For the smaller remodeling jobs, focus only on the simple tasks as painting the walls or cabinets. Neutral colors are a safe choice in order to avoid potential buyers with something they don’t particularly approve of. If the kitchen needs a full remodel, focus on the right upgrades to improve the overall outcome. Generally spend between 6-10% of the total home value in order to get a fair amount in return.

For Key Upgrades to Make, Use This Quick List to Confirm What You Should Already Be Doing:

  • Countertops are a prime choice to invest in, in both the kitchen as well as the bathroom. Granite is a popular choice. It costs a bit more, but it is wise to avoid high-end or exotic colors, veins, and patterns. To many customers, granite is granite.
  • Cabinets are also a great place to add value. There are plenty of options to update and upgrade cabinets without completely replacing them. Add features and amenities like hinges and soft-close doors/drawers. Repainting and refacing the cabinets with a new stylish veneer is an ideal choice, as well as replacing knobs to look more modern.
  • Appliances have the potential to make or break a kitchen. They can be one of your biggest investments, depending on the extent of the remodel. Stainless steel is still popular for major appliances. Whenever possible, focus on suites rather than individual appliances. Not only will it give the kitchen a uniform look, but it can mean significant savings on the unit price for each appliance.

When it Comes to Bathrooms, Simple Changes Can Make a Big Difference.

  • A new paint job can completely transform a bathroom. period.
  • Fixtures like toilets, faucets, and even shower heads can give the updated look without a huge investment.
  • Vanities are one of the main focuses in a bathroom. There are plenty of in-stock options available at any store.
  • Flooring is key throughout the house but more so in the bathroom. Tile remains popular and can get expensive if you let it. Focus on the middle road with colors and patterns that play off the tile in the shower, as well as the rest of the house’s flooring.

In the end, always be selective when doing a remodel. Start with the rooms like the kitchen and bathrooms to give yourself the best possible ROI. Even within just those rooms, keep it simple so you’re able to invest more in high-visibility updates for which the potential buyers ultimately end up looking for.