Forex Articles

Before you spend thousands of dollars improving your property, it pays to know the difference between upgrades that actually increase the value of your home and changes that only appear to do so.

Let's say, for example's sake, that you've always wanted a swimming pool. You imagine that the addition will boost your home's value significantly. But, in reality, swimming pools only boost values in certain circumstances—in very warm climates, or in upscale neighborhoods where many other houses already have pools. Even then, families with small children, who are looking to buy a home, might not purchase one with a pool and its attendant safety risks. Moreover, if a pool takes up a significant portion of the yard, potential buyers may also pass on it.

Fortunately, the 2015 Cost vs Value Report provides statistics on several renovation projects that are proven to increase the resale value of your home. Below, we present seven of those projects, along with a few you should probably avoid.

It will cost you approximately $1,230 to replace your entry door with a 20-gauge steel unit—but you will recoup 101.8% of the cost. While it may not appear that something so simple can really add value, an attractive front entrance adds to the curb appeal of your property, and provides an extra layer of security and piece of mind.

You can expect to pay $1,596 to replace roughly 300 square feet of vinyl siding on the lower third of your house with manufactured stone veneer. Then, you can expect to recoup 92.2% of what you've spent on the project. Manufactured stone veneer is lightweight, durable, and looks like real stone. It also helps to insulate your home, and it adds an architectural element.

The average cost to replace a 16x7-foot, four-section garage door on galvanized steel tracks is $1,595. Garage doors come in a variety of designs and materials,improve curb appeal, and provide an 88.4% return on investment.

Replacing 1,250 square feet of existing siding with new vinyl siding (including trim) will set you back approximately $12,013. But doing so will improve the appearance of your house—potential homebuyers appreciate the no-maintenance material—and you'll recoup 80.7% of your investment.

Adding a 16 x 20-foot deck, with pressure-treated deck boards, three steps, wood posts, railings, and a built-in bench and planter, costs about $10,048. Doing so will add a new gathering, relaxing, and entertainment area, and provide an 80.5% return on investment.

For $19,226, you can remodel a 200-square-foot kitchen. (This renovation includes replacing 30 linear feet of cabinet doors, drawers, hardware, and countertops, as well as new flooring, a new wall oven, cooktop, sink, and faucet.) You can expect to recoup 79.35% of your investment.

It costs about $11,341 to replace ten 3-x-5-foot double-hung windows with insulated wood windows (aluminum or vinyl exterior). Doing so will improve the look of your home, help you save on your heating and cooling bills, and providing a 78.8% return on investment.

There are a number of renovation projects which, despite their past popularity, have shown themselves to have a decreasing rate of return investment. These include sunroom additions (which now have a 48.5% return on investment), a home office remodel (expect to recoup just 48.7% of your cost), and bathroom additions, which are estimated to return 57.8% of your costs.

With the right renovation project, you can increase the comfort, beauty, and resale value of your home, and generate considerable returns on investment.