Anyone who has ever purchased a dilapidated house before and attempted to flip it for a profit knows that the prospects of getting back more than you spent is a challenge. It is certainly possible however, and there are many specialists who do this for a living. Whether you have entrepreneurial aspirations or are simply concerned with making a sound investment, here are three areas in which you can generally expect decent return on investment (ROI).
Renovating your kitchen is relatively expensive – especially when you take an entire roster of new appliances into account. But it’s also an almost sure-fire way to generate ROI. If you sell shortly after renovating, you can almost certainly count on the value of the house increasing beyond what you put into the kitchen. Wooden floors, stone countertops and new cabinetry are all good bets. Just don’t underwhelm with low-quality upgrades, as doing so could backfire.
Here’s a good rule of thumb: if you have several bathrooms, renovate one or more; but if you only have one bathroom, skip the renovation and build a second. Far too many houses are short on bathrooms, and adding one or more in this situation will certainly add value. If there’s no shortage of shower space in your house, then consider adding stone floors and walk-in closets to turn heads when it comes time to sell.
Curb appeal matters and many buyers begin making up their minds about a particular property the moment they see it from the outside. This involves more than landscaping; for example, adding a porch or a deck can certainly improve curb appeal. Otherwise, a well-manicured garden, shade trees and a flowerbed can add at least the perception of value (or a willingness to pay more) for a relatively small financial investment.
Just remember: if you plan on living in the space, it’s important – first and foremost – that the renovations you carry out make you happy and content. That’s a form of ROI in and of itself.
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