A residential property’s value may decrease over time. Whether it’s a rental or your current home, the wear and tear affect its overall selling value, which can lead to a lower return on investment. Maintenance and improvement are crucial to keeping your hard-earned money from going down the drain.
Why Is Maintenance And Improvement Essential?
Maintaining and improving a residential property can increase its value. These are done through repairs, renovations, and cleaning. Although maintenance may add to your expenses, you can benefit in the long run.
A home is an example of a depreciable property, which means you can deduct the cost you spend on repairs and renovations from your taxable income. As a property owner, knowing the basics of calculating property depreciation is imperative in taking care of your investment.
What Improvements Increase Residential Property Value?
Cosmetic, functional, and structural improvements help maintain or increase residential property value. Some of the projects that give higher returns are the following:
- Modernize The Kitchen And Bathroom
Kitchens and bathrooms are the two major selling points in a home. These rooms are exposed to frequent wear and tear. They are also at risk of water damage, making them more vulnerable to depreciation.
Modernizing your kitchen and bathroom increases the value of the home. For the kitchen, upgrading the countertops is the best investment. Natural stones like marble, granite, and soapstone can significantly increase resale value. However, you may also choose a high-end quartz slab for durability, water resistance, and longevity.
Another kitchen upgrade is adding modern and energy-efficient appliances. All in all, a full kitchen remodel can increase home value by 3% to 7%.
For bathrooms, enhanced waterproofing, replacing the tiles, and installing new fixtures are the best value boosters. A major remodel can give you an increase between 53% to 58% of the total renovation cost.
- Repair Or Replace The Roof
The roof protects the home from the changing weather, so it’s constantly exposed to harsh outdoor conditions. Depending on the roofing material, you can see major deterioration within 15 to 25 years. In this case, roof replacement is required. If this is what you’re looking to do for your property, you can check out this website: https://dallasftworthroofer.com/mckinney-tx/roofing/
One thing to consider when looking for professionals who can help you with roof repairs is whether the roof can be repaired or if replacing the roof in its entirety is more cost-effective. If the roofing material doesn’t show damage and is still new, minor repairs and roof cleaning can help it regain its beauty and function. However, the value it adds is too low.
On the other hand, you can expect an ROI (return on investment) of 60% to 68% when you install high-quality roof materials like slate, composite asphalt, and standing-seam metal sheets. It’s also best to choose neutral colors for a timeless aesthetic.
- Upgrade The Floors
Upgrading the floors is also a wise move when boosting residential property value. However, the ROI depends on the cost and quality of the newly-installed floors.
Hardwood floors add the most value to a home. You can expect the total property value to increase by 2.5%. This flooring material is a timeless design element that makes a perfect canvas for various interior styles. It’s also durable and lasts for a hundred years with proper maintenance.
- Enhance Curb Appeal
Enhancing the property’s curb appeal is key to maintaining and increasing its value. You can see how well the property is maintained by looking at its yard, siding, and outdoor living spaces, so investing in these features is crucial. Undertaking a landscape refresh to improve the overall aesthetic can do wonders. This could involve a full landscaping and hardscaping project using elements like Landscaping Rocks to elevate the design. Working with a reputed contractor ensures the work is done properly and materials are sourced from quality suppliers. Giving the landscape a fresh look signals to potential buyers or passersby that the property is well-cared for, instantly boosting the perceived value.
- Landscaping: According to the American Society of Landscape Architects (ASLA), a professionally designed and well-maintained landscape adds 15% to 20% to the total resale value, making it worth your budget.
- Siding: You can expect an ROI of about 76% for a new vinyl siding installation. Aside from increasing the property’s curb appeal, siding replacement by https://americanmadewindowsupstate.com/ (or a similar company in your area) also protects the home from water damage due to increased and efficient waterproofing.
- Outdoor Living Space: Building a deck or covered patio can add up to 5% to the total home value. It may include an outdoor kitchen, a barbeque area, a hot tub, and a fire pit.
The curb appeal’s positive impact on the total property value is worth splurging on.
- Increase Energy Efficiency
Energy-efficient homes have a remarkably higher value than conventional houses. If you’re planning to get certified for energy efficiency, here are some of the improvements you must focus on:
- Insulation: A properly insulated home can lower the heating and cooling bills and increases property value by 2% to 6%, depending on its rating.
- Triple-Glazed Windows: Three-panel windows help keep the home weatherproof and soundproof while giving you an ROI of up to 70%.
- Solar Power System: Installing solar panels can add about USD$5,900 per kilowatt. This value may increase or decrease depending on your location.
- Upgraded HVAC System: Upgrading your HVAC (heating, ventilation, and air conditioning) system with the help of a company specialising in the repair, replacement, and installation of central air conditioning melbourne (or elsewhere) can increase between 5% to 10% of your total property value.
When applying for an Energy Performance Certificate or EPC, look for a professional for inspection and a checklist of improvements.
Conclusion
Making major improvements in your residential property is crucial to maintaining and increasing its value. Despite requiring a significant budget, the benefits of renovation will be worth it.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin