Real estate development is booming in Washington, D.C. with prices at a premium and the market shows little sign of slowing down. This means that investing in property now can end up reaping significant dividends in the future. Whether your goal is to create a short-term rental or a family home that accrues value, there are some simple upgrades you can make to increase your return on investment. Here are five easy ways to increase the ROI on your property.
1. Attic Insulation
While not the most attractive upgrade, the truth is that beefing up your attic insulation is one of the easiest ways to increase your ROI. Remodeling Magazine reports a 117% ROI on attic insulation 1. This upgrade pays for itself in two years and then continues adding value to a home. Most houses are under-insulated, which is a leading cause of inefficient heating and cooling.
2. Kitchen Remodels
This is one area where less is often more. Skip the over-the-top, high-end remodels, which won’t give you as much bang for your buck. Instead, consider a thoughtful, well-executed mid-range remodel. Stick with classic, contemporary looks that will age well. Pro tip: white marble countertops are trendy, but stain easily. You should be able to recover around 81% of your costs at resale 2.
3. Bathroom Upgrades
Even a minor bathroom remodel can give you a 100% return on investment. Small details like regrouting tile and replacing caulk around tubs, showers, and toilets can go a long way. Replacing mirrors, fixtures, and hardware are also small but impactful upgrades that can add to the value of a property.
4. Landscape Upgrades
Expert estimates for the ROI on landscape upgrades vary, but the general consensus is that smart upgrades can easily give you a 100% return. There's no doubt a beautiful landscape increases curb appeal. Even the simplest of upkeep like lawn care, at around $50 for lawn mowing service or the time to do it yourself, can provide a clean and tidy appearance. There are also plenty of ways to add hardscaping for a value increase to any outdoor design. The highest value-added is in patios, decks, and outdoor kitchens. These improvements can expand the usable square footage of your home by giving you more space to entertain. But there’s little point in making costly upgrades to the landscape if it isn’t well maintained. DC area homeowners spend up to seventy hours a year on lawn care, with most opting for biweekly mowing and maintenance. Making sure your landscape and exterior are in good repair is always a winning investment.
5. Flooring Fixes
One of the most visually impactful elements in the interior of a property is the floors. Dirty, scratched, and worn-down flooring never gives a good first impression. Refinishing a wood floor pays for itself. Installing new floors and replacing carpets with hardwood is another investment that pays off. For rental property, a carpet is just one more thing that needs replacing. Tile and hardwoods offer durable, easy-to-clean surfaces.
Before beginning any major renovations, check the market value of your home and neighboring houses. You don’t want to overdo it and improve the house beyond the market value. If your home is the most expensive on the block, you’ll be hard-pressed to attract buyers when it’s time to sell. You also want to be careful about expansions that reduce the square footage of your yard, since outdoor spaces are a huge selling point.
Whether you're a long-distance investor or a homeowner, these low-cost upgrades can immediately improve your property value and give you a solid ROI. Spending a little now can pay off in both the long and short run, so don’t wait to get started.
Meredith Hale is a gardening and landscape writer, and design addict. She has coordinated the design on many house flipping projects, admitting that her favorite part is creating inspired outdoor spaces.
2 - https://www.remodeling.hw.net/cost-vs-value/minor-kitchen-remodel?y=2018