Homeownership is one of the most significant investments you can make, and with the right approach, your home’s value can grow substantially over time. Whether you plan to sell your property or simply want to enjoy a better living space, smart home improvements can lead to a high return on investment (ROI). But how do you know which projects will give you the best return—and how can financing help you maximize your investment?
In this blog, we’ll discuss some of the top home improvement projects that yield the best ROI and explain how financing can be an excellent option to help you achieve your home improvement goals without breaking the bank.
Why Home Improvement Financing Makes Sense
Home improvements often require a significant upfront investment. For homeowners who might not have enough savings, financing provides a practical way to get started on renovations. Home improvement loans or financing options can help spread the cost over time, allowing you to complete high-impact projects without draining your savings.
By financing your home improvement project, you can also:
- Manage Cash Flow: Financing allows you to make payments over time, easing the financial burden.
- Complete Larger Projects: With more capital available, you can take on bigger improvements that offer higher returns.
- Take Advantage of Low-Interest Rates: If you secure financing with a low-interest rate, your investment in home improvements could cost you less over time.
Now that we understand why financing home improvements can be beneficial, let’s explore which projects provide the best return on investment.
Top Home Improvement Projects with the Best ROI
- Minor Kitchen Remodel
The kitchen is the heart of the home, and potential buyers often see it as one of the most important rooms when considering a purchase. A minor kitchen remodel—such as updating countertops, replacing old appliances with energy-efficient models, and refreshing cabinetry—can significantly boost your home’s value.
Estimated ROI: 70%–80%
- Bathroom Renovation
Bathrooms are another high-priority area for many homebuyers. Simple updates such as installing new fixtures, re-grouting tile, or replacing an outdated vanity can have a big impact. Larger projects, like installing a new shower or bathtub, can offer an even greater return.
Estimated ROI: 60%–70%
- Curb Appeal Enhancements
First impressions matter, and curb appeal is one of the most cost-effective ways to boost the value of your home. Simple exterior improvements—such as landscaping, painting your front door, or upgrading lighting fixtures—can make a huge difference.
Estimated ROI: 60%–70%
- Attic or Basement Conversion
If you have an unused attic or basement, converting the space into a livable area (such as an additional bedroom, home office, or entertainment space) can significantly increase the square footage of your home, leading to a higher home value.
Estimated ROI: 70%–75%
- Energy-Efficient Improvements
Upgrading your home to be more energy-efficient is both environmentally friendly and financially rewarding. Projects like installing new windows, upgrading insulation, or installing a high-efficiency HVAC system can reduce long-term energy costs and add value to your home.
Estimated ROI: 60%–90%
- Adding a Deck or Patio
Outdoor living spaces are increasingly popular, especially in warmer climates. Adding a deck, patio, or outdoor kitchen area can create a great space for entertaining or relaxation while increasing your home’s value.
Estimated ROI: 65%–75%
- Replacing Your Roof
A new roof is one of the most significant investments you can make in your home. Although it can be a costly project, a new roof can increase the value of your home, particularly if your current roof is aging or damaged.
Estimated ROI: 60%–70%
NOTE: Actual ROI numbers can vary case to case. Numbers listed are estimates.
Conclusion: Maximize ROI with Smart Home Improvements
Home improvements are an excellent way to enhance the comfort, functionality, and value of your home. However, to make the most of your investment, it’s important to focus on projects that deliver the highest return on investment. Minor kitchen and bathroom remodels, energy-efficient upgrades, and outdoor improvements like adding a deck or enhancing curb appeal are all projects that offer great potential returns.
By financing the right home improvements, you can increase your home’s value without depleting your savings, making it easier to achieve your goals and ensure that your home is worth more in the long run.
Ready to get started on your home improvement journey? Choose projects that align with your budget and vision for your home, and you’ll be on your way to maximizing the return on your investment!