Maximize Your Renovation ROI with These Home Improvement Projects

Looking for home renovation ideas that will increase the value of your property? Maximizing renovation ROI is essential if you want to increase resale value while staying within your budget. The key is to focus on projects that provide the most return relative to cost. Kitchen and bathroom renovations, for example, are expensive but are known to add considerable value to a home, while simple upgrades like replacing hardware and painting walls create a big impact with a small investment. By prioritizing smart and strategic renovations, you can maximize your renovation ROI and enjoy a more comfortable, functional, and valuable home.

Top 10 high ROI renovation projects

Renovating your home can be a great way to improve your living space and boost its value. However, not all renovations are created equal when it comes to return on investment. Here are ten high-ROI renovations that can increase the value of your home and provide a solid return on your investment.

Kitchen remodel for improved functionality and resale value

Average cost: $35,000 to $45,000*                   ROI: 75–100%

Kitchen remodelling is one of the best ways to increase the value of your home and improve its overall appeal to potential buyers. Upgrading appliances, cabinets, countertops, and flooring can give your kitchen a fresh and modern look, while also improving its functionality and efficiency. Consider popular design features such as an open floor plan, ample storage, and energy-efficient appliances. When selecting materials and finishes, choose quality and options that will stand the test of time. A well-designed and upgraded kitchen can be a major selling point for your home, making it a worthwhile investment that can pay off in the long run.

*Based on a 12-by-12-foot mid-range kitchen

Add luxury to your bathroom renovation for high returns

Average cost: $33,000 to $38,000*                   ROI: 75–100%

Bathroom improvements are a smart investment when it comes to increasing the resale value of your home. Updates can give your home a luxurious bathroom, making it more appealing to potential buyers. Some popular upgrades include replacing outdated fixtures with newer, more energy-efficient ones, installing new lighting, updating the vanity and sink, and re-tiling the shower or bathtub. It’s also important to consider your own family’s needs while keeping an eye on renovation ROI. By investing in these improvements, you can help to attract more buyers and potentially increase the value of your home.

*Based on a mid-range bathroom with four fixtures

Basement renovation: Transform underutilized space

Average cost: $50,000 to $55,000*                   ROI: 50–75%

Renovating your basement is a great way to increase the resale value of your home. A finished basement can add valuable square footage to your living space and create extra room for entertainment, storage, or even a guest bedroom. Some popular basement renovation ideas include adding a bathroom and creating a home theatre or game room. It’s important to keep in mind that a finished basement should be functional, comfortable, and well lit, with proper ventilation and insulation.

*Based on a 30-by-30-foot basement

Outdoor living: Add a deck, patio, or porch

Average cost: $8,000 to $12,000*                   ROI: 50–75%

Adding outdoor living space to your home can significantly increase its resale value. Outdoor living spaces, such as a deck, patio, or porch, provide a comfortable and inviting area for relaxation, entertainment, and outdoor dining. A well-designed outdoor living space can also enhance the curb appeal of your home and make it more attractive to potential buyers. When designing your outdoor living space, consider the size, layout, and materials, as well as the local climate and your lifestyle needs. For example, suburban landowners may add a deck, while urban dwellers may see high ROI from a rooftop patio.

*Based on a 10-by-10-foot wood deck

Garage and front door replacements for a cost-effective upgrade

Average cost: $2,000 to $2,500*                   ROI: 50–75%

Replacing your garage door and front door are two renovation projects that can provide a high return on investment. A new garage door can not only enhance the curb appeal of your home but also improve its security and energy efficiency. Moreover, installing a new front door can improve your home’s appearance and provide better insulation and security. It’s important to choose doors that are made of durable materials, have energy-efficient features, and complement the overall style of your home. By investing in these upgrades, you can potentially increase the value of your home and attract more potential buyers, while also enjoying the benefits of better security and energy efficiency.

*Based on a front door replacement

Improve energy efficiency with window replacements

Average cost: $1,000 to $1,500 each*                   ROI: 50–75%

Improving energy efficiency through window replacements can be a smart investment to increase the resale value of your home. New windows can lead to lower energy bills and a more comfortable living space, which buyers will like. Energy-efficient windows can also improve the curb appeal of your home and potentially attract more buyers, so consider the general appeal when choosing a window type. When selecting new windows, look for those with a high Energy Star rating, which indicates that they meet energy efficiency standards. By investing in new windows, you can potentially increase the value of your home, reduce energy costs, and make your home stand out from the crowd.

*Based on a low-end PVC window

Protect your home with a roof replacement

Average cost: $8,000 to $9,000*                   ROI: 50–80%

Replacing your roof is a home upgrade that can provide a high renovation ROI. A new roof can not only enhance the curb appeal of your home but also improve its energy efficiency and protect the home – and its contents, including the residents! – from potential damage. When selecting a new roof, consider factors such as durability, weather resistance, and style. A high-quality roof can also potentially attract more buyers and increase the value of your home.

*Based on a 25-by-40-foot medium-slope shingled roof

Increase curb appeal by replacing your siding

Average cost: $25,000 to $35,000*                   ROI: 50–80%

Replacing your home’s siding can be an effective way to improve its curb appeal and resale value. Old or damaged siding can detract from the appearance of your home and potentially decrease its value. Replacing it with new, high-quality siding can give your home a fresh look and increase its durability and energy efficiency. When selecting new siding, consider the materials, style, and colour options that will complement the architectural style of your home. By investing in new siding, you can potentially attract more buyers and increase the value of your home, while also improving its appearance and energy efficiency.

*Based on mid-end (CanExel) siding for an exterior measuring 25 ft x 40 ft x 10 ft

Add livable space with an attic conversion

Average cost: $55,000 to $60,000*                   ROI: 50–75%

Converting your attic into a livable space can provide excellent renovation ROI. Attic conversions offer a cost-effective way to expand your home’s living area without the need for additions. Furthermore, converting your attic can also provide a great return on investment in terms of your lifestyle. The additional living space can be used for various purposes, such as a home office, a playroom for children, or even an extra bedroom. Ultimately, an attic conversion can be a smart investment that provides both financial and personal benefits.

*Based on a 25-by-60-foot turnkey attic conversion

Boost income potential and home value with a second suite addition

Average cost: $95,000 to $110,000*                   ROI: 50–75%

Adding a suite to your home, either via an addition or by converting a basement, can offer an excellent return on investment. The new apartment can create a rental income stream or provide additional living space for family members and guests. Suites can offer a steady rental income that can pay off the construction costs in a few years. Moreover, a suite can add significant value to your property, especially in areas with high rental demand. The additional living space can also provide more flexibility and versatility to your lifestyle by offering a separate living area, kitchen, and bathroom. Overall, adding a suite to your home can be a smart investment.

 *Based on a 25-by-40-foot low-end, turnkey addition

Small home improvements that add value

Small home improvements, such as a new backsplash or cabinet hardware, can add visual appeal to a home without breaking the bank. These simple updates can have a big impact on a home’s appearance and can potentially increase its market value when it’s time to sell.

Beautify your home exterior with landscaping projects

Landscaping projects can transform the exterior of your home into a beautiful and inviting space. Simple projects like adding colourful flowers or shrubs can make a big impact, while larger projects like installing a water feature or creating a garden can create a tranquil oasis. Landscaping can also increase your home’s curb appeal and value.

Revamp your home’s look with a fresh coat of paint

A fresh coat of paint can give your home a whole new look and feel. It’s an affordable way to update your space, hide imperfections, and make a room look brighter and more spacious. Choosing the right colour is key – neutral colours create a timeless and sophisticated look, while bold colours add a playful touch.

Add thoughtful details with new hardware, crown moulding, and wainscotting

Adding new hardware, crown moulding, or panelling to a home can transform its appearance and create a more elegant and polished look. Updating outdated hardware such as doorknobs or cabinet pulls can make a big impact with a small investment. Crown moulding and wainscotting or other panelling can add interest and character to a room.

Upgrade your countertops to refresh your kitchen or bathroom

Upgrading your countertops can enhance the overall look and functionality of your kitchen or bathroom. Choose a material that fits your budget, style, and needs, such as granite, quartz, or marble. Durable and easy-to-maintain countertops can improve the value of your home and provide a great return on investment.

New flooring: Big impact for a small investment

New flooring is a worthwhile investment that can instantly update the look of your home and increase its value. Choose a flooring material that fits your lifestyle and budget, such as hardwood, tile, or vinyl. Durable and high-quality flooring can improve the comfort, safety, and energy efficiency of your home.

Other factors to consider

While renovation ROI is an important factor to consider, it’s not the only one. You should consider your family’s lifestyle, your preferences, and the disruption to their lives during the renovation process. Another common concern is energy efficiency. Some areas also have legal or HOA restrictions to consider.

FAQ on renovation ROI

Can a low-cost renovation project still have a high ROI?

Absolutely! Some of the best home renovation ideas are budget-friendly upgrades to kitchens, basements, exteriors, and other large areas.

Should I prioritize ROI or personal preference when choosing a renovation project?

You may not have to choose. Many projects which ease your own family’s life – accessible bathrooms, basement conversions – are likely to appeal to other families, too. If a choice must be made, many prioritize personal preference for their own residences and ROI for rental properties.

Is it worth investing in energy-efficient upgrades for my home?

Yes, it usually is. Investing in energy-efficient upgrades for your home can save you money on utility bills, increase your home’s value, and reduce your environmental impact.

How can I finance my home renovation project and still see a good ROI?

There are a few different ways to finance your home renovation project, such as using home equity, a line of credit, a personal loan, and a variety of financial assistance programs. However, folks looking to both purchase a property and renovate it may benefit from a special option: the purchase–renovation mortgage. Here’s an example from Desjardins illustrating the difference between a traditional mortgage and a purchase–renovation mortgage.

Standard mortgage

Chris wants to purchase a property listed for $400,000. They pay the minimum down payment ($400,000 x 5% = $20,000), and the rest of the cost ($380,000) will accrue interest over time as the remaining balance is paid.

Purchase–renovation mortgage

Melody wants to purchase a $400,000 property and to spend $20,000 on renovations to improve it. If she uses the purchase–renovation loan, she’ll need to cover the minimum down payment of the total project value (i.e., $420,000 x 5% = $21,000).

As you can see, Melody can pay $1,000 more to receive some extra funds for her renovation project that 1) are interest-free until she uses up the full amount and 2) have the same interest rate as her mortgage.

The broker or lender will need to make sure that the home renovations will bring up the value of the home. For example, kitchen, bathroom, and floor projects are great options with high renovation ROI, while swimming pools, sheds, and landscaping are not.

In some cases, you can also be reimbursed by the lender or broker after submitting proof of payment or work progress. For invoices, you make a purchase or payment beforehand, submit it, and then are reimbursed. However, the latter involves an approved assessor visiting the work site, determining what percent of the work is complete, and reimbursing the borrower accordingly.

 

 

Get the most value out of your home improvements

In conclusion, investing in high-ROI home renovations is a smart move if you’re looking to increase the value of your property. By choosing the right renovations, you can significantly boost your home’s appeal to potential buyers, while also improving your living space.

Your investment, whether large or small, can provide significant financial and lifestyle benefits, making it a wise choice.