Summer Home Renovations: 10 Upgrades That Pay
The case for improving one’s home can be made for several reasons. As a homeowner or real estate investor, it’s important to understand that not all summer home renovations are created equal. While some upgrades are more profitable than others, some can end up costing more than they’re worth.
One of the primary takeaways when considering summer home renovations are those that pay back — also known as the return on investment (ROI). In essence, these home improvements are an investment aimed at yielding the most bang for your buck. Additionally, many common home improvements are eligible for tax incentives, making them especially lucrative for both homeowners and investors.
The first step when undertaking summer home renovations is to consider which upgrades offer what, including the various tax incentives associated with each option.
In terms of highest return on investment and best chances to maximize possible tax benefits, the following 10 summer home renovations offer homeowners the best of both worlds:
1. Insulating Your Attic: One of the largest returns on investment an investor can obtain is through home insulation, especially with an attic. Insulating one’s attic can have a 116.9 percent return on investment, with costs amounting to $1,268 while the resale price would increase to $1,482.
2. Manufactured Stone Veneer: Another popular summer home renovation option is installing manufactured stone veneer. Installing manufactured stone veneer can produce a 92.9 percent return on investment, with costs averaging $7,519 while resale value is $6,988.
3. Replacing the Garage Door: Believe it or not, replacing or upgrading your garage door can boost your home’s value significantly. A garage door replacement can offer a 91.5 return on investment, with costs equaling $1,652 while resale value is $1,512.
4. Siding Replacement: One of the smartest summer home renovations is replacing or repairing a home’s siding. This upgrade, which is costlier than most on this list (average cost is $14,100), provides a tremendous 77 percent potential return on investment as the resale value of this project will fetch a resale value of $10,857.
5. Replacing the Front Door: As the entrance to your home, a front door plays a critical role in both its appeal and resale value.
6. Deck & Patio Additions (Wood):One of the more financially savvy home improvements a homeowner can make is the addition of a deck or patio. A wood deck or patio addition will cost approximately $10,471 while generating a potential resale value of $7,850. This equates to a 75 percent return on investment. Not a bad deal.
7. Going Solar: One of the best long-term investments a homeowner or investor can make is installing a solar PV system. Because the sun is guaranteed to rise every day, going solar offers homeowners one of the best ways to invest their money.
8. Updating the Kitchen: One of the more expensive home renovations is a kitchen remodel. As an integral component tied to a home’s value, the kitchen plays an important role in both the resale value and appeal when selling it. Even a minor kitchen remodel can fetch an 81.8 percent return on investment, with costs equaling roughly $20,122 and resale value reaching $16,716.
9. Replacing Windows: As simple as it sounds, replacing or fixing a home’s windows can do more than improve a home’s value. Along with reducing cooling costs, this summer home renovation offers unique tax deductions that homeowners can take advantage of right away.
10. Landscape: One of the more undervalued summer home renovations is landscaping. More often than not, landscaping plays a vital role in both a home’s curb appeal as and its value. In fact, good landscaping, which is one of the least expensive projects a homeowner can undertake, can enhance a home’s value by roughly 28 percent.
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