There’s always something you can do to upgrade your luxury real estate and increase its value. However, some home renovations are worth more than others. The return on investment, or ROI, will differ depending on the type of renovation project and the long-term value it adds to your home.
When it comes to luxury real estate, basic but essential remodels can fall by the wayside. Use this list to plan your next few projects and increase the overall value of your home for the long term.
1. New Exterior Finish
Boosting your curb appeal is one of the best ways to beautify your home. A clean, sturdy exterior speaks volumes about how updated and secure your residence is.
Potential buyers recognize that exterior work can be expensive, but it signifies that you take care of your property. Updates also matter because they offer homeowners a sense of prestige. A shabby or outdated home exterior won’t bring them pride of possession.
In 2021, manufactured stone veneer has especially brought back high returns. Homeowners who spent around $10,000-$11,000 on materials have made $9,000-$10,000 in resale value. Most ROI values don’t approach 100% returns, but stone veneer sits at 92.1% return value for the past year.
2. Minor Kitchen and Bathroom Remodels
Even in luxury real estate, the two areas of your home that matter the most for resale are the kitchen and bathrooms. These can be the most expensive areas to update and remodel, and potential buyers are looking for new appliances and classic finishes.
While installing new flooring and fixtures may not seem very luxurious, it’s the bones and foundational pieces of a house that set the stage for real luxury. If you install a hot tub but lose a shower and half the floor space, your bathroom likely won’t feel much better than before.
Interestingly, minor rather than major updates to these areas brought better return value in 2021. Large-scale remodels are often overly personalized, so they could turn away eventual buyers who don’t have the same tastes or priorities as you.
Keep your remodel as classic as possible to avoid this and still create a luxurious space you love. You can bring personality in with easily changeable fixtures, paint and accessories. You can change these items out if you decide later to sell.
3. New Garage Doors
In 2019, investing in a new garage door brought back an incredibly high ROI at 97.5% of average initial investments for most homeowners. This is an affordable way to bump up curb appeal and increase the overall value of your home.
Luxury homes often have several garage doors, all of which will need maintenance and replacements eventually. Choosing new ones carefully can improve the appearance of your whole residence while also increasing security and efficiency. You can always add other high-end items to upgrade your garage space further.
Luxury comes in two types – quality or quantity. For example, you can have 10 cheap candy bars or one expensive, healthy smoothie. Think of a new garage door as the smoothie. It may not be the most fun item to replace, but it brings quality and updated maintenance to your home.
4. A Deck
You may have dreamed for years of the luxury of having your own deck. Well, you’re not the only one. Comfortable outdoor spaces are the essence of luxury, and many people hope to have a deck attached to their new home. For example, if you’re in sunny Australia and looking to buy a home in Brisbane, decks will always be in demand because of the climate.
Because so many people appreciate them, decks also have a good ROI. This depends partially on what materials you use to build them. In 2021, they were worth about 63.2% return investment on average.
However, all home renovations bring benefits you value more than money – after all, that’s why you pay for them. Luxury looks like enjoying the beautiful living spaces you’ve created. The key to any project is to stay in your house long enough to appreciate the work you’ve done before you decide to resell.
5. New Roofing
Updating your roofing is an excellent way to bring resale value to your home. For one thing, it gives potential buyers peace of mind about the structure and stability of your house. New roofs can be expensive, and if you’ve already done it, the new homeowner won’t have to for a while.
Updated roofing also improves the overall curb appeal of your home and can achieve the unique yet classic look luxury homeowners love. If your home is large, this project may not be something new homeowners want to tackle right away.
Depending on the material you choose to replace your roofing, you can get a high return on this home investment as well. In 2021, asphalt shingles had an ROI of 60.7%, and metal shingles came in at a close second with 56.1%.
Living in Style
Living in style means covering all your bases. A home updated with solid foundational components, new appliances and classic finishes is the epitome of luxury.
Any design element you take too far could impact your ROI negatively if you eventually decide to sell. Luxury real estate has to walk a fine line between boring and classic.
Don’t forget to have fun with your remodels. Plan so that you will love living in your home, but don’t forget that someone else may live there at a later date.