So what can you do to pretty up that home you are selling to get the best price or that investment property so that you can confidently ask for a higher monthly rent? As it turns out, renovating kitchens and bathrooms are a good investment, but a fresh coat of paint, inside and out, might do much more to catch the eye of a prospective buyer or tenant.
The law of first impressions applies to real estate as well. Someone on the lookout for property that drives by and sees a fresh, top-notch paint job is more likely to want to see more. Canadians appear to be picking up on that fact, even though fewer homeowners will be doing upgrades this year, 51 percent compared to the 62 percent in 2011.
The key is to put your money into renovations that will give you the best return on your investment. Painting is at the top of that list and if well done can generate a rate of return up to 300 percent. Kitchen remodeling tends to be one of the most expensive renovation projects, but if done well and by sticking to a budget, you might recoup between 68 and 120 percent of your investment.
Adding a bathroom increases home value, giving a return of between 80 and 130 percent. Upgrading an existing bathroom will net you a 65 to 120 percent return. Replacing windows and doors can increase the appearance and increase the energy efficiency of your home and net you a 50 to 90 percent return on your investment. Stay away from oddly shaped windows or heavily customized projects, as they actually detract from a home’s value. Expanding, improving or adding a deck can net you between 65 and 90 percent return on your investment, and is one exterior investment that does add value to your home.