Almost every homeowner has had them: grand dreams of renovating that house and turning into something of a modern day castle. The problem with these dreams is that they can cost a lot.
Except for the lucky 1%, the rest of the world has to live on a budget. Sometimes, this budget does not allow you to add in an Olympic size swimming pool to your backyard nor does it allow you to install crystal chandeliers in your hallway. But that doesn’t mean that you now forever have to live like a pauper.
Just because you do not have enough money to model your house after the Buckingham Palace does not mean that there aren’t things you can do to make look much better than it does now. You just need to direct that money to the right places. These are the best areas to spend your budget during property renovation.
Your entryway and front door
When it comes to your front door, you have two options, you can either buy a new one or just repaint the one that you already have. Both options give you almost the same value for money. In fact, in a Cost vs. Value argument, renovating your front door adds about 96% of the amount spent on that project to the overall value of your home. Yes, your home will be slightly more valuable just because you did something about the entryway, and the front door to be specific.
Replace old elements
As much as additions may be exciting and challenging, replacing old elements such as doors, sidings and windows actually bring in better financial returns that adding a new pantry. Spend a little money on making sure that all the walls are well painted, all the windows are well insulated and that your sidings are as good as it gets.
Estate agents, however, advise that you should strongly consider updating kitchen and bath. Minor kitchen remodels, such as new countertops and better cabinets, yield about 83% of the project’s entire cost back to the value of the house. If this entire project cost you £1,000, the value of your house will go up by about £830.
In general, the kind of renovations that bring the most return include:
While the ones that bring in the least returns include:
So, if you were to spend your money on any kind of renovations around the house, focus on the first lot. For some real life examples of low-cost fix and flips, you may want to check out this Rick Otton podcast episode: