Strategy

Renovation can be a sound strategy for smart investors

Renovation can increase the value of your property investments

By: Nesa Rahmat/

Image credit: Grant McLean/Flickr

Getting ahead in real estate investments is not just about buying properties – the most strategic move for you may be to improve the value of a property you already own, even your home. If you are happy where you are, renovation can be a sound financial strategy. When you renovate your own home, you win twice – once when you enjoy the benefits of a better home, and once again when you sell the home.

When it comes to resale value, however, not all renovations are created equal.

Let’s look at an example. Suppose you live in a landed property and fancy a hot tub on your back deck, and decide to invest $10,000 or so. Will that add $10,000 to the value of your home? Likely not. The truth is, not everybody wants a hot tub. In fact, somebody bidding on your home might not want to bother with the maintenance, and may be inclined to get rid of it. Their bid, therefore, will not take your investment into account – it might even be seen as a negative.

The lesson here is that when you’re prioritising your renovation, make sure you consider which ones add the most value to your home.

Here are some guidelines for renovations:

  • Chose improvements that are most popular with prospective buyers. Kitchens and bathrooms are at the top of the hit list according to statistics gathered by several agencies.
  • Keep your home in top shape. Homes that are not looked after deteriorate rapidly in value. For private landed properties, a leaky roof, for example, can cause damage to your hardwood floors. Siding that is in bad shape can lead to animals and other pests getting into
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Green Home Remodeling – Best Real Estate Investment Strategy for Commercial Property and Homeowners

Green Home Remodeling: Best Home Renovations for Consideration

Green home remodeling has experienced a rise in popularity across the region as many homeowners and commercial property investors seek to improve the appearance and durability of their property structures. I've come to truly understand why as well. Green renovations such as bamboo flooring or implementation of alternative wind energy use provide long-lasting and favorable enhancements to properties that are sustainable, trendy and eco-friendly. Additionally, earth-friendly renovation and remodeling costs have begun to drop as more green contractors become available on the market.

Best Green Home Remodeling Projects to Consider

Consider green home remodeling for your property when it's time to renovate. Eco-friendly renovations that won't break your budget are not only attainable, but can provide an increased ROI, or return on your investment, with the right strategies. The key to getting a proper return on investment is to consider the types of maintenance and work needed for the house, the best options available and the neighborhood in which your property is located.

Essentially, there are five basic types of home remodeling projects: home maintenance, curb appeal, neighborhood norm, appraisal booster, lifestyle improvement and "green" improvement. For the record, some of these improvements may intersect with others, but overall, the ones that are most important to consider are home maintenance and appraisal booster.

Home maintenance repairs are those that would manage the home's condition and are pretty routine to the lifecycle of almost every house. Home maintenance renovations would include projects such as roof repairs, flashing roof leak repair, weather-stripping and storm door repairs. If your gutters, plumbing fixtures, and other "everyday" shelter needs required work, these would all fall under the umbrella of normal home maintenance and repair.

Appraisal boost renovations provide a quick turnaround and prepare a home for quick …

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