Residential real estate is typically the largest investment for individuals and families in Central Florida. Making high return-on-investment (ROI) home upgrades is a smart way to enhance that investment while improving comfort and sustainability. Whether you want to boost resale value, enhance aesthetics, or lower energy costs, here are some affordable upgrades that offer significant ROI.
How To Calculate Your Home Upgrade’s ROI
Calculating return on investment involves a standard ROI formula that factors in both the amount spent on a home upgrade and the resulting increase in property value.
ROI = (Net profit/cost of investment) x 100
The net profit is the actual or expected financial gain from the investment minus its cost.
The cost of investment includes the total expenses, including:
- Materials
- Labor
- Permit fees
- Ongoing subscription/service fees (if applicable)
To calculate the ROI on a bathroom remodel, for example, we’d plug in the numbers:
- Cost of investment in remodeling, labor, permitting, and related expenses: $25,000
- Net profit, or return on investment (at appraisal): $18,000
That equates to a bathroom remodel return on investment percentage of 72%. This is typical for many home remodeling or renovation projects.
Read More: The Best Smart Home Technology Upgrades
5 High-ROI Home Improvements
While many families can't afford expensive remodels or renovations, there are several affordable and accessible home upgrades that can make your living space more comfortable.
1. Garage Door Replacement
A cost-effective home improvement with superior ROI, replacing an old, weathered garage door immediately boosts curb appeal. If you’re putting your home on the market, start here. Upgrading to a new garage door has an average of ROI around 200%!
2. Entry Door Replacement
Another eye-pleasing upgrade, upgrading to a new steel front door typically offers a return on investment of 100% or more, meaning you’ll get every dollar back.
3. Upgrade Your Kitchen Appliances
Whether you’re completing a kitchen remodeling job or just upgrading to improve efficiency, make sure your home’s electrical system is in good shape first. Replacing older appliances with modern, energy-efficient models offers an average return on investment between 50% and 90%.
4. Enhance Curb Appeal
Among the best home upgrades for the best ROI are exterior enhancements. Repaint your home, upgrade your landscaping, tidy up bushes and flowers, and enhance outdoor lighting. Security lighting is always a plus; just choose LED bulbs, which offer an ROI of more than 100% within a year.
5. Adding Insulation
Similar to maintaining your HVAC system, adding insulation can enhance your home’s energy efficiency, offering a relatively short payback period. Insulation provides anannual ROI of 18.5%!
Insulation may also prolong the functional lifespan of your heating and cooling systems by reducing the frequency and duration of running cycles.
Cost-Effective Home Plumbing Upgrades
Upgrading plumbing fixtures and integrating smart home tech might not be the stuff of your interior-design dreams, but they provide an immediate cost savings and could prevent big issues.
- Upgrading to low-flow toilets offers an average ROI up to 100%, and it’s an inexpensive, quick process.
- Smart plumbing technologies, such as leak detectors or sump pump alarms, offer peace of mind and protect against costly water damage.
Explore More High-ROI Home Upgrades with Advanced Air Services
We're the go-to team for home services in Central Florida. We focus on cool, smart-home upgrades like HVAC and plumbing. You can rely on us for quality work without breaking the bank. Set up a service appointment with our friendly techs today!
Contact us online or call 386-260-2330 to schedule an appointment!