Inexpensive improvements with short turnarounds typically generate quick ROI, but are not necessarily as effective as the long-term and costly upgrades. The three different categories of home improvements are:

These improvements have a broad range of budgets and timeframes, but the investment return is not guaranteed.

Due diligence needs to be carried out before undertaking any improvement that can only generate potential value, or you will risk no return on your investment or even a loss. This will include assessing the costs involved and the timeframe to carry out the works beforehand.

Elements under the remit of potential value include outdoor improvements, such as gardening work or swimming pools. Conducting these improvements in climates where the weather is less favorable is unlikely to add value. However, they can grow the value potentially in more suitable locations.

If you know your investment area and property type well, you may have the required judgment to know if a potential value improvement is sure to add to the worth of the property.

Short-term value improvements benefit from two factors. Firstly, these improvements typically aren’t as costly as the major value additions. Secondly, they benefit from much quicker turnaround times. This means you can see your ROI taking place sooner, but perhaps not as effective as more extensive improvements.

Short-term value improvements typically cost a few thousand dollars but can make a notable difference to the property’s value straight away. These include room refurbishments and modernization, particularly bathrooms or kitchens.

The key to these projects is to allocate a budget that won’t surpass the end value. Using expensive materials in a new kitchen or bathroom won’t necessarily achieve you the highest ROI or even break even against the cost of the material in the first place.

Long-term improvements are typically more major projects, including significant refurbishments, repurposing internal space, or adding space through extensions. If your property has uninhabitable storage space (such as an attic), converting these into usable and habitable rooms is a proven method of adding long-term value.

However, you should carefully consider and carry out due diligence beforehand. These are expensive commitments, and you should seek second opinions from architects and engineers to ensure realistic budget expectations and what value you can get in return.

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Adding to the square footage is an expensive but almost guaranteed long-term improvement (when done correctly).

Pre-existing but uninhabitable basements and attics give you the benefit of already having the space; you just need to carry out the conversion.

Uninhabitable spaces such as basements like this have great potential, both for the value of your property and for prospective buyers.

Converted attics and basements offer ideal rooms for gyms, home cinemas, or offices. They are typically beneficial in high-income earning areas where prospective buyers are looking to buy

You may need a professional opinion on the best approach to converting these rooms, mainly if they are a larger space and will benefit from being converted into multiple rooms.

The kitchen and bathrooms command the most functionality of any rooms in our properties.

Kitchens and bathrooms are more susceptible to maintenance issues when older properties are concerned. However, modernizing these rooms (particularly in older homes) improves the functionality of a home and the visual appeal when marketing the property for sale.

They are generally the most expensive refurbishments you can do without altering a property’s primary structures, so material costs need to be budgeted ahead of any works being carried out.

You should also consider the demographics of the population by your investment property. A loss is likely to be made if investing in a highly functional, contemporary kitchen space but in a low income earning area.

Looks may not be everything when it comes to a property, but they are indeed the first aspect prospective buyers see on the market.

To upgrade the curb appeal will mean making external adjustments. This includes a range of quicker short-term value improvements and costlier long-term improvements.

Overall, improvements that include new windows, doors, and roofing have the most significant visual impact. However, they can also help when it comes to the security of a property, which helps to encourage buyers who emphasize home security.

When undertaking any major visual changes, considerations need to be taken to the aesthetics of your property’s area. If the appearances aren’t aligned with the houses nearby, it can be off putting to those homebuyers who want to feel a part of the community.

Landscaping can add to the property’s curb appeal and create additional functionality for other improvements in the future, whether carried out as part of your investment or by future homeowners.

A front or rear garden will feature heavily in external appearances, so having them look presentable and desirable is crucial to the property’s curb appeal. You can also look to flatten certain areas to add decking or create spaces for future homeowners to commit to larger projects, such as swimming pools. Creating “templates” through landscaping gives buyers the vision for potential, and negates any risk making this commitment yourself should there be no additional value-added.

If you have invested in a property with an old, perhaps manual garage door, then upgrading to an automatic or motorized door is a fantastic way to add value. New garage doors look and function better and further add to the property’s curb appeal.

On the subject of doors, upgrading any external doors (particularly the main entry point) to newer steel doors is beneficial from an investment perspective. Not only do they offer better security than traditional doors, but they also provide better energy efficiency and have lower maintenance needs.