SuperUser Account / Wednesday, May 15, 2024 / Categories: SmartMoney Home Improvement ROI Where to get the biggest bang for your home improvement buck While there are lots of reasons people are motivated to take on a home improvement—maybe they’re getting ready to sell, creating new spaces, upgrading surfaces and finishes, or making a backyard space more livable—there’s one thing they all have their eye on: the ROI of their project. And with good reason. As it turns out, the return on investment (ROI) for home improvement projects can vary dramatically. Assuming your project isn’t a must-do (think: room for a new baby), it may be worth your time to consider how and where you want to put money back into your home. Here’s a look at the ROI for a number of interior and exterior projects based on data from the National Association of Realtors' Remodeling Impact Report: Interior Remodel Project ROI Refinishing hardwood floors 147% New wood flooring 118% Insulation upgrade 100% Basement conversion to living area 86% Closet renovation 83% Attic conversion to living area 75% Complete kitchen renovation 75% Bathroom renovation 71% Kitchen upgrade 67% Add new bathroom 63% Add new primary bedroom suite 56% Exterior Remodeling Project ROI New roofing 100% Garage door 100% Fiber cement siding 86% Vinyl siding 82% Vinyl windows 67% Wood windows 63% Steel front door 63% Since not all projects offer the same ROI, it makes sense to evaluate them based on your goals and budget and prioritize them based on the value they’ll add to your property. As for how to fund a remodel, you’ve got options, including: Cash/Savings; Personal loan; Home equity line of credit (HELOC); Home equity loan; Mortgage refinance; and Credit cards. As for which approach is best for you, the answer is ‘it depends.’ If you can swing paying cash out of savings and not deplete emergency funds, you should choose this route as you won’t incur debt or interest charges—and you’re more likely to stick to a budget. If you’re going to borrow money, you need to be clear on how much of a monthly payment you can afford. You also need to be aware that some options—HELOC and home equity loans—may include closing costs and also take longer to get approval on than a personal loan. As for credit cards, while they give you quick access to cash for materials and supplies, they also tend to have higher interest rates than other lending options. If you aren’t sure which funding option is right for you, contact our branch banking team or visit any branch to help you weigh the factors. DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, investment or legal advice. Previous Article 10 Tips for building your savings Next Article Smart Tax Refund Moves Print 261
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