Not all home repairs and renovations are created equal. While many home improvements can increase the safety and comfort of your home, others can also increase your property’s equity and potential value at resale. As you think about which upgrades you want (and can afford to make), remember some projects offer considerably more financial payback than others. And when the timing’s right, a home improvement personal loan can help you launch your project quickly.
5 Home Improvements with Exceptional ROI
In Remodeling’s annual cost vs. value report, the average costs for popular home improvement projects with the best return on investment at resale are compared. We’ve rounded up the top five projects that bring an average ROI of 75 percent or more, and reasons why you might want to start planning for them now.
1. Garage door replacement
It might surprise you to learn that a relatively inexpensive job delivers the most bang for your buck. Replacing your old garage door with something more attractive instantly adds “curb appeal,” that priceless positive first impression someone gets upon seeing your home. And that’s not all. Installing a new door presents an opportunity to improve on the garage’s insulation. By choosing the right materials and resealing the door, you could keep the space warmer in winter and cooler in summer, possibly saving you money on your energy bill.
- Average cost: $3,611
- Average payback: $3,250
- ROI: 97.5%
2. Manufactured stone veneer
Another project that makes a good impression when people first see your home, manufactured stone is not stone, but actually made of cement. However, just like real stone, it adds a classic, old-world touch to the look of your home. Compared to wood veneer, manufactured stone veneer is very low maintenance and offers good fire resistance.
- Average cost: $8,907
- Average payback: $8,499
- ROI: 94.9%
3. Minor kitchen remodel
Keeping changes “minor” is the key to getting a good bang for your buck when it comes to kitchen improvements. Stick to the kind of renovations that make your kitchen easier to use, brighter, and safer. Focus on improving the workspace flow by maintaining “the kitchen triangle” (refrigerator, stove, and sink all within easy, close access). Look for alternatives to fashionable high-end materials. You can avoid the sticker shock of marble countertops with beautiful options like quartz, granite, or limestone. For flooring, non-wood materials like laminate or vinyl, are usually not only less expensive, but less vulnerable to scratches and easier to maintain than hard wood.
- Average cost: $22,507
- Average payback: $18,123
- ROI: 80.5%
4. Wood deck addition
Outdoor space is a luxury that never goes out of style. A deck provides a place to entertain or recreate and a way to get fresh air in private. Decks effectively create additional usable square footage on your property. What’s more, you may be able to add a deck with minimal disruption to your daily life during construction.
- Average cost: $13,333
- Average payback: $10,083
- ROI: 75.6%
5. Siding replacement
Here’s another idea for an upgrade that will impress potential buyers the moment they drive up, as well as make the neighbors happy. After years of wear and tear from inclement weather, multiple paint jobs, or run-ins with mold, your old siding may be making your home look rundown. If a good wash, new paint job, or replacement of individual panels won’t do the trick, a total overhaul can be a really good value.
- Average cost: $16,036
- Average payback: $12,119
- ROI: 75.6%
The Bottom Line
With the right home improvements, you can not only gain a more beautiful, comfortable, and functional nest, but peace of mind knowing you’re making a worthy investment. And when you’re ready to get your project started, if you don’t have the cash, a home improvement personal loan can help. Remember to explore home improvement loan options, do your research, and always shop around.
Get started by checking your rate through LendingClub with no impact to your credit score.1 Loans are available through LendingClub for as low as $1,000 all the way up to $40,000—and you could be approved in 24 hours and have the money in your bank account in as few as four days.2,3
1 Checking your rate generates a soft credit inquiry, which is visible only to you. A hard credit inquiry that may affect your credit score only appears when your loan is issued.
2 Of all personal loans approved between 1/1/19 – 3/31/19, 72% were approved within 24 hours.
3 Based on a majority of borrowers who were issued loans between 1/1/18 and 12/31/18. The time it takes for your loan to be funded may vary.
As published on: blog.lendingclub.com/