LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

These home improvement projects pay off most — major kitchen and bath remodelings don’t make the cut

Tom Robbins by Tom Robbins
May 31, 2023
in Investing
These home improvement projects pay off most — major kitchen and bath remodelings don’t make the cut
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


Most homeowners are planning to remodel at some point down the road, but not everyone will get their money’s worth in improved home value.

Of all home improvement projects, the most popular are sparkling bathroom overhauls, according to newly released data from the Contractor Growth Network, followed by big-ticket kitchen and basement renovations.

In some cases, homeowners may get that money back when it’s time to sell, but, more often, these home renovations rarely deliver a great return.

More from Personal Finance:
Credit card debt nears $1 trillion
How to get started with investing, budgeting
How much emergency savings you really need

Overall, homeowners are getting just a 60% return on their renovation investments, according to a separate Cost vs. Value report from Zonda Media, a housing market research and analytics firm.

And the projects offering the greatest returns in resale value are not new kitchens and baths but rather projects related to a home’s curb appeal.

“You have to throw away everything you see on HGTV,” Todd Tomalak, Zonda’s principal of building products research, recently told CNBC. 

Homeowners can expect a 100% return on investment on only a handful of renovations or additions, such as converting a heating, ventilation and air conditioning system to electric; replacing garage doors; installing a stone veneer; or upgrading to a steel front door.

A minor kitchen remodeling — such as painting and updating the backsplash — did provide high returns, but major kitchen and bathroom renovations did not, the Zonda survey found.

With high home prices and a tight supply of units for sale, more people are choosing to fix up their current home rather than look for something new, according to Tomalak.

gerenme | E+ | Getty Images

Even though both construction and financing costs are up, this decade could be “the golden age of remodeling,” Tomalak said.

Still, cost is a “critical issue,” he added.

Further, financing renovations or improvements will only get more expensive as long as the Federal Reserve keeps interest rates high to curb inflation.

Do the math before starting a home project

About 95% of homeowners said they plan to take on a major home improvement project in the next five years, according to a recent report by Real Estate Witch. However, only 50% said they can afford it at the moment.

They’ll also likely spend more than they initially expect. The average homeowner shelled out $3,890 on renovations and remodeling in the past year alone, the report found.

To budget wisely, talk to a realtor in your area about specific renovations that could increase the value of your home and which ones to skip, advised Sophia Bera Daigle, CEO and founder of Gen Y Planning, an Austin, Texas-based financial planning firm for millennials.

The Property Brothers: Don't make these home renovation mistakes

Always get competitive bids on any project and add 10% to that estimate as a “buffer,” she said, since extra expenses “will likely come up.”

If you are going to finance a project, look into obtaining a home equity loan or home equity line of credit and factor in the interest rate and potential monthly payment. “Make sure you can work these monthly payments into your budget before you begin,” Daigle said.

It may make more sense to hold off on a big renovation so that you can save money, pay down debt and see if interest rates go down, added Daigle, a certified financial planner and also a member of CNBC’s Advisor Council.

Finally, consider how long you will stay in your current home and how a renovation will impact your life, Tomalak said. “If people are moving less often, this shifts the question of remodeling from an investment to the quality of living.”



Source link

You might also like

Small caps break out to a new high and may keep rallying heading into year-end

Walmart charts show four bullish patterns forming in the retail giant

71% of Americans say debt is high enough to limit saving or building wealth

Share30Tweet19
Previous Post

How do I make sure my commercial rental property is properly maintained? – LandlordZONE

Next Post

Equity Residential’s stock rises after raised profit, revenue outlooks, amid strong demand in New York

Tom Robbins

Tom Robbins

Recommended For You

Small caps break out to a new high and may keep rallying heading into year-end
Investing

Small caps break out to a new high and may keep rallying heading into year-end

October 15, 2025
Walmart charts show four bullish patterns forming in the retail giant
Investing

Walmart charts show four bullish patterns forming in the retail giant

October 15, 2025
71% of Americans say debt is high enough to limit saving or building wealth
Investing

71% of Americans say debt is high enough to limit saving or building wealth

October 15, 2025
A rebound in transportation stocks would be music to Dow Theorists. But don’t count on it
Investing

A rebound in transportation stocks would be music to Dow Theorists. But don’t count on it

October 15, 2025
Next Post
Equity Residential’s stock rises after raised profit, revenue outlooks, amid strong demand in New York

Equity Residential’s stock rises after raised profit, revenue outlooks, amid strong demand in New York

Related News

Tesla now distinguishes cars by battery suppliers for tax credit eligibility

Tesla now distinguishes cars by battery suppliers for tax credit eligibility

June 27, 2024
Flying solo without Cigna will keep Humana focused on 2 big priorities in the year ahead

Flying solo without Cigna will keep Humana focused on 2 big priorities in the year ahead

December 11, 2023
These two stocks are the best positioned software names to ‘profitably leverage GenAI,’ says Bernstein

These two stocks are the best positioned software names to ‘profitably leverage GenAI,’ says Bernstein

November 28, 2023

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?