While psychological and emotional factors play a big role in determining our renovation strategies, we will have to confess that Return on Investment (ROI) also plays on our mind all through the process.
I have clients who have said on record that they love the concept of green homes and at the same time asked me in a hushed up voice “Will it pay off Martin?” Let me share with you a couple of values I hold dear and delve in a few stray strategies for you.
Confirm prices in the neighbourhood
Before you choose to make ROI-worthy home renovations, it is always a big plus if you have explored your neighbourhood thoroughly. Information regarding the Comparable Sales Figure will give you the ballpark projection of a property’s worth in your neighbourhood.
After all, it won’t be a sound idea to carry home renovations which cannot be more offset in their expenses by the profit you make on the sale.
Real and nominal value growth are two different things
Also, it won’t harm you to have a fairly conservative estimate in mind while pondering over house renovation designs. I say this because over time, lot many things will change.
Higher household incomes will bring down the ‘real’ value growth of properties and at the same time inflation will enhance the prices buyers will like to pay for your remodelled home.
KItchen and bathroom spaces at centrestage
I have seen a paradigm shift from the buyers’ perspective in the last decade. Kitchen has become the focal point for homeowners (in fact, this trend is responsible for marginalising the ever-popular dining spaces towards oblivion) and bathrooms have become the integral aspect of their daily lives.
Keeping in mind these developments, ROI-centric home renovations will do well to first turn towards these two citadels of modern day home design.
In descending order, you can move towards porches, patio, basements and landscaping. Now this is a strictly personal opinion but I assume it holds good for the designing and remodelling industry today.
The question of energy- efficiency
We are still warming up to the question of energy-efficiency. I don’t see that day too far away when “green and clean” remodelling will become part of the ROI scheme too. Already, the great energy debate and mounting electric bills have ensured that buyers look more intently at the “efficiency’ focus of a home.
Window replacements, among other “energy-centric” renovations
Talking of which, one can’t but shed some light on window replacements. I am sure they will also catch up. I can foresee a time (with a great deal of conviction) when clerestory windows will become the order of the day and iPhone app-optimised windows, the ones which change their opacity as required, become a part of majority of homes. All for the good cause of energy-efficiency, Kudos!
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