5 Home Renovations that Sizzle this Summer!
According to a study by Harvard University’s Joint Center for Housing Studies, spending on home improvement projects and repairs grew by almost 3% in 2020. During that year, Americans invested about $420 billion in home repairs and renovations. That number will continue to increase by another 4% in 2021, according to Abbe Will who researched the project.
The home improvement market is hot. If you’re considering a makeover now is the best time to act. But be careful, you’ll want to consider the type of project you undertake so you don’t lose return on investment in the process. Many home building projects can increase home equity when it comes to resale, while others won’t. To help evaluate costs when planning your next makeover, take a close look at these 5 most profitable home investment projects compiled by Remodeling Magazine’s Cost vs. Value 2021:
1) Stone Veneer: Put your best foot forward when it comes to remodeling the front of your home with this siding project—especially since it’s the first thing a potential buyer sees before stepping through the door. A quality stone veneer is one of the safest financial building projects to take on. A typical stone veneer costs about $10,300, will improve resale value at $9,500, and 92% of the cost will be recouped.
2) Garage Door Replacement: A new garage door will cost about $4,000, and you’ll be able to regain about 93% of the costs. Most people use their garage daily, so a new door will make your home look more beautiful, and everyday life comfortable and practical.
3) Minor Kitchen Remodel: Replacing countertops, cabinet doors, and drawers with higher-quality materials can seriously improve the value of a kitchen. And, when you throw in a modern refrigerator and stove, it will make your culinary experience that much more enjoyable. These combined upgrades will cost about $26,000, and you can expect to recover around 72% of the initial investment.
4.) Vinyl Window Replacement: Double-hung windows can be clunky, inefficient, and are prone to damage. To cut down on energy costs while improving a home’s aesthetic appeal, replacing these windows with divided-light vinyl windows is a smart bet. For the average home, this project will cost around $19,000.
5.) Fiber Cement Siding: Fiber cement siding is inexpensive, durable, and beautiful. It can handle extreme temperatures and severe weather much better than other siding materials. It’s especially a good investment by reducing maintenance and repairs. Installing fiber cement siding will cost about $19,000, and approximately 69% of recovered costs when the home sells.
Other expensive remodeling projects can increase the value of your home like room extensions, and attic or garage conversions. However, it also depends on the type of extension and materials being used. You’ll want to ensure that the addition appeals to the average buyer. And, that the extension matches the style of your house. Thinking about adding a swimming pool? You may want to reconsider if you want to regain costs. Swimming pools aren’t only expensive but deter perspective buyers who have children, and can cost $1,000 annually to maintain.
If you plan to stay put in your home, sometimes resale cost-effectiveness of a given building project isn’t as important as what appeals to you for comfort. If you are willing to pay more for your dream makeover, you can research the cost-effectiveness of some of the least profitable home improvement projects.
When you find you are ready for your next renovation, consider an NIHFCU Home Equity Loan or line of credit. With great rates and terms, we can get you the funds you need to meet your needs. To get a no-obligation check-up, click here or call 1-855-203-4747.
