CREATE VALUE IN YOUR HOME

By
Real Estate Mortgage Broker with VERICO Designer Mortgages Inc.

 

For investors looking to maximize their return on investment, here’s all you need to know: building an income suite is by far the most profitable homeowner reno.

How do I increase the value of my property? That’s the question on every homeowners mind. There are two key survival strategies. The first is to think long term, have a plan and stick to it. History shows that this plan of action can pay off.

The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on investment (ROI).

Here are the top five “renos for ROI”:

1. Building an income suite
Also known as a rental suite, this is by far the most profitable reno a homeowner can undertake. Income suites typically have a 150% to 250% ROI.

2. Painting
This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job are key. This simple reno project gives 100% ROI.

3. Renovating Kitchens and bathrooms
Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. This delivers about 75% to 100% ROI.

4. New Flooring
This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors. New flooring can generate an avg. of 70% to 90% ROI.

Light Fixtures and Door Hardware
These can reveal the true age of a property. Installing proper lighting and a few nifty fixtures in the right places, namely the kitchen and dining room, will brighten up the space and create atmosphere. With the right touch, updating light fixtures and door hardware can generate 60% to 75% ROI.

 

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  1. Robert May 11/30/2011 01:08 PM
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Rainer
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Vick Pacheco / Luxury Homes & Lifestyles
REALTOR, VickTheRealtor@gmail.com
Charles Rutenberg Realty / Luxury Homes & Lifestyles

Adding a rental suite is an incredibly great idea! We converted our garage bays which are part of our current house in to a private office with private access and a movie room. Adding 600 air conditioned  sq ft to the total of the house.  We are adding a detached 3 car garage in the back of the house with a living space on top of about 800 sq ft., the rental suite will have its own garage! They are also a great alternative for mother in law suites.

May 31, 2010 02:22 PM
Rainmaker
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Robert May
Real Estate Expert & Mortgage Broker- Lethbridge
Verico Canada First Mortgage/ Rainbow Realty

Haven't seen a post from you in a long time or a comment on my lethbridge real estate blog, just checking back on some active rain members who have been missing for a while.   

Robert May

Verico Canada First Mortgage

July 22, 2010 01:23 AM
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