An average home renovation is far from a cheap endeavour. The cost depends on many things and the scope of the upgrade is probably most important. Anyone who’s thinking about comprehensive remodelling is probably wondering about the price tag.
But the cost itself isn’t enough of a concern on its own and without some context. It’s important to determine whether a certain upgrade is justified in terms of return on investment and comfort it’s going to deliver. If you don’t know how to decide whether a renovation is worth the money spent, here’s how to find out.
Think about the Potential ROI
The term return on investment (ROI) refers to the profitability of an investment. In other words, how fast will a home renovation pay itself off and start delivering financial benefits?
Here’s an example to help you understand the calculation better.
Let’s say you decide to spend on low-flow (water conservation) accessories for the bathroom. These deliver a return on investment that stems from the increased consumption efficiency and reduction in the water bill you’re going to get.
A low-flow sink, for example, can reduce the flow of water by about 30 per cent. A low flow toilet saves even more water. Conservative estimates show it pays itself off in about seven years, after which you will be enjoying the money saved.
The same logic can be applied to any other home upgrade – new windows and doors, insulation, kitchen appliances, HVAC systems, etc. Don’t just look at the current price. Put that in perspective and consider how the renovation is going to affect your spending habits in the long run. If you’re going to enjoy some savings and cost reductions in the year to come, a home upgrade is definitely worth the money spent.
The way in which a home renovation improves your life quality is a bit less tangible than the ROI you can actually measure.
Yet, this is the second important thing you’ll have to consider before spending your money on anything.
Just think about an aspect of the renovation and the manner in which it’s going to impact your lifestyle.
Let’s go through one more example to illustrate the concept. Imagine you’re renovating a guest bedroom and you install spectacular marble floors there. Marble is definitely a beautiful, exquisite material. The fact that it’s installed in the guest bedroom, however, should make you wonder about the need for such an investment. If you don’t use that space too much yourself, chances are that you’re not going to experience noticeable improvements in your quality of life.
Thus, the biggest spending should be concentrated on the home areas that you use the most. Think about problems and missed opportunities you’re currently dealing with. Having an upgrade tackling those issues in the most comprehensive way will make both practical and financial sense.
Near-sightedness is a very big problem when it comes to realistically assessing the value of a renovation.
The final thing you have to do to decide if an investment is justified is to consider the long-term perspective.
Perhaps you’re spending a lot of money on a thorough upgrade now. But if that upgrade is going to save you money on maintenance and repairs in the years to come, it’s definitely worth taking on. Just consider the warranties you’re going to get for both materials and craftsmanship. These give you a pretty good idea about the problem-free lifespan of a certain home update.
Also, think about how long you plan to live in the respective home.
Are you planning to start a family soon, a life choice that will necessitate a move to a bigger space in a couple of years? If that’s the case, investing in expensive home upgrades right now to enjoy in the future doesn’t really make sense. You’ll be much better off saving some money and investing that amount in the acquisition and the renovation of a new family home.
The worth of a home upgrade isn’t 100 per cent objective – you have to think about the actual ROI and the way in which your lifestyle is going to be impacted.
Generally, remodelling projects worth taking on are the ones bound to fix design, structural or functional flaws. They’re also the ones that can result in more comfortable and affordable living in the years to come.
As a person who isn’t a professional, you may lack the experience and the perspective to assess aspects of a renovation and the ways in which these are going to leave a print on the property (for good or for bad) in the future.
Home Guide’s experts are here to offer you a thorough consultation. Contact Home Guide if you need more clarity on different home upgrades and the financial effectiveness of those. Together, we will examine multiple renovation scenarios to determine the one that would make the most sense both in terms of ROI and lifestyle enhancements.
Get Insurance if You Don’t Have It Already
Here’s one final thing that will help you enjoy your brand new home without a single worry.
Consider some insurance in order to protect your property and get coverage for eventual damage.
Most of the time, a home renovation is an expensive endeavour. Of course, there are excellent promo offers but we’re talking about typical expenses. You’re investing in your flat and your iving space. Protecting that investment is very important if you don’t want to spend a lot of additional money on future repairs caused by unforeseen circumstances.
Home insurance is a must-have even if you’re not worried about eventual accidents and problems. It’s best to be prepared for a worst-case scenario than to be caught off-guard. Good and affordable insurance options do exist so you really don’t have a reason for skipping the step.
So, are you ready to plan and finalise the best home renovation of a lifetime? If so, contact Home Guide. We’ll be there during every step of the way, to guide you, give you professional know-how and execute every part of the renovation in a way that delivers exceptional results.