Home renovations can increase property value, both in the form of rental income and overall value. Take the example of one of our clients in Downtown Vancouver.
Meysam, co-founder of Enzo Design, advised the client to not spend more than 15% of the value of the property on renovations. At the time, the value of the Condo was $750,000, and the client’s budget was $78,000. So that’s a budget of just over 10%. Before the renovation the clients rental income was $1,800 a month, post renovation the rental income climbed to $3,000 a month – close to a whopping 67% increase.
So Vancouver’s unique and competitive real estate market, investing in the right upgrades can make a significant difference.
Today we’ll cover eight key renovations that can enhance your home’s value through both rental, and overall value, ensuring you make informed decisions about your property.
Renovations That Increase Home Value in Vancouver: First Look
| Renovation | Key Improvements | Potential ROI on Cost |
| Kitchen Remodel |
|
75-100% |
| Bathroom Renovation |
|
70-80% |
| Energy-Efficient Windows |
|
60-80% |
| Basement Finishing |
|
70-75% |
| Outdoor Living Spaces |
|
60-70% |
| Smart Home Technology |
|
80-85% |
| Curb Appeal Improvements |
|
75-100% |
| Attic Insulation |
|
80-90% |
8 Renovations & Remodels That Provide ROI & Increase Home Value
Kitchen Remodel
Why It Increases Value
A modern kitchen is a major selling point for homes. It not only enhances the aesthetic appeal but also improves functionality, making it a top priority for buyers. A well-designed kitchen can become the heart of the home, where families gather to cook, eat, and spend quality time together. Buyers are often willing to pay a premium for a home with a stylish, updated kitchen, as it reduces the need for immediate renovations after purchase.
Popular Upgrades
- Modern Appliances: Stainless steel appliances are highly sought after for their sleek appearance and durability. Energy-efficient models also appeal to eco-conscious buyers.
- Countertops: Quartz and granite are popular choices due to their durability and low maintenance. These materials also add a touch of luxury to the kitchen.
- Cabinets: Soft-close drawers and custom cabinetry add a touch of luxury. Custom cabinets can maximize storage space and improve kitchen organization.
- Lighting: Under-cabinet lighting and pendant lights improve both ambiance and functionality. Proper lighting can make the kitchen more inviting and easier to work in.
Cost vs. ROI
Kitchen remodels in Vancouver typically cost between $25,000 and $50,000, with an average return on investment (ROI) of 75-100%. This means that a significant portion of the renovation cost can be recouped when selling the home.
Bathroom Renovation
Why It Increases Value
Updated bathrooms are crucial for modern living. They enhance both the functionality and the visual appeal of a home, making them highly attractive to potential buyers. Bathrooms are used frequently, and outdated fixtures or worn surfaces can detract from the overall appeal of a home. Modernizing these spaces can make a home feel more luxurious and comfortable.
Key Upgrades
- Fixtures: Installing modern faucets and showerheads not only improves the look of the bathroom but can also enhance water efficiency.
- Tiling: High-quality tiles for floors and walls add durability and style. Popular choices include ceramic, porcelain, and natural stone.
- Vanities: Double sinks, LED lights and ample storage space can make a bathroom more functional and appealing to families or couples.
Cost vs. ROI
A bathroom renovation can cost between $10,000 and $25,000, with an expected ROI of 70-80%. This investment can significantly enhance the appeal of your home to potential buyers.
Energy-Efficient Windows
Why It Increases Value
Energy-efficient windows reduce utility costs and improve home comfort. They also have a positive environmental impact, which is increasingly important to buyers. These windows can help maintain a consistent indoor temperature, reducing the need for heating and cooling, which lowers energy bills and increases the home’s overall efficiency.
Types of Windows
- Double-Pane: Provides good insulation and reduces noise. Double-pane windows are a standard upgrade that can make a significant difference in energy efficiency.
- Triple-Pane: Offers superior energy efficiency. Triple-pane windows are ideal for homes in colder climates or for those seeking the highest level of insulation.
- Low-E Coatings: Reflects heat while allowing light to pass through. Low-E coatings can help keep homes cooler in the summer and warmer in the winter.
Cost vs. ROI
The cost of installing energy-efficient windows ranges from $8,000 to $20,000, with an ROI of 60-80%. This upgrade can lead to substantial long-term savings on energy bills.
Basement Finishing
Why It Increases Value
Finishing a basement adds valuable living space, which can be used for various purposes, significantly enhancing the home’s overall value. A finished basement can transform an underutilized area into a functional and appealing part of the home, making it more attractive to potential buyers.
Potential Uses
- Rental Unit: Provides additional income. A basement apartment can be an attractive option for buyers looking for rental income or a separate living space for family members (take a look at these basement kitchenette ideas).
- Family Room: Offers more living space for activities. A finished basement can serve as a playroom, home theater, or entertainment area.
- Home Office: Ideal for remote work setups. With the rise of remote work, having a dedicated home office space is increasingly valuable.
Cost vs. ROI
Basement finishing costs between $20,000 and $50,000, with an expected ROI of 70-75%. This renovation can add significant usable space to your home, making it more versatile and appealing.
Outdoor Living Spaces
Popular Outdoor Renovations
- Decks: Wooden or composite decks increase outdoor functionality. A well-designed deck can serve as an extension of the living area, providing a space for relaxation and entertainment.
- Patios: Stone or concrete patios provide durable outdoor spaces. Patios offer a low-maintenance option for outdoor living and can be customized with various materials and designs.
- Gardens: Well-maintained gardens add aesthetic appeal. Thoughtfully designed gardens can enhance the beauty of the outdoor space and provide a serene environment.
Why It Increases Value
Outdoor living spaces are highly desirable as they expand the usable area of a home and provide a pleasant environment for relaxation and entertainment. Some buyers are increasingly looking for laneway homes, others are looking for homes that offer outdoor amenities, as these spaces can be enjoyed year-round in Vancouver’s mild climate.
Cost vs. ROI
Costs for outdoor renovations can range from $5,000 to $15,000, with an ROI of 60-70%. Investing in outdoor living spaces can make your home more attractive to buyers and increase its overall value.
Smart Home Technology
Why It Increases Value
- Security Systems: Enhance safety and provide peace of mind. Modern security systems can include features such as video doorbells, smart locks, and surveillance cameras.
- Smart Thermostats: Improve energy efficiency and convenience. Smart thermostats can be programmed to adjust temperatures based on occupancy and preferences, leading to energy savings.
- Automated Lighting: Adds convenience and can be controlled remotely. Automated lighting systems can create customizable lighting scenes and improve home security.
Value Addition
Smart home technology makes homes more attractive to tech-savvy buyers and can significantly increase the property’s value. These systems offer convenience, efficiency, and enhanced security, making them a worthwhile investment for homeowners.
Cost vs. ROI
Investing in smart home technology typically costs between $2,000 and $10,000, with an ROI of 80-85%. This upgrade can modernize your home and appeal to a wide range of buyers.
Curb Appeal Improvements
Why It Increases Value
First impressions are crucial when selling a home. Improving curb appeal makes the property more inviting and can significantly affect buyers’ perceptions. A well-maintained exterior can set the tone for the entire home, making it more attractive and memorable to potential buyers.
Key Improvements
- Landscaping: Well-maintained gardens and lawns enhance the visual appeal. Simple landscaping updates, such as planting flowers or adding mulch, can make a big difference.
- Exterior Paint: Fresh paint to give the home a clean look. A new coat of paint can refresh the appearance of your home and protect it from the elements.
- Front Door: A new or updated front door enhances the entryway. A stylish front door can be a focal point and improve the overall curb appeal.
Cost vs. ROI
Curb appeal improvements usually cost between $2,000 and $7,000, with an ROI of 75-100%. Enhancing the exterior of your home can attract more buyers and potentially lead to a quicker sale.
Attic Renovation
Why It Increases Value
Proper attic insulation via a renovation improves a home’s energy efficiency, leading to lower utility bills and a more comfortable living environment. Insulation helps maintain a consistent indoor temperature, reducing the need for heating and cooling, which can result in significant energy savings.
Types of Insulation
- Fiberglass: Affordable and effective. Fiberglass insulation is widely used and provides good thermal resistance.
- Spray Foam: Offers excellent insulation and air sealing. Spray foam insulation can fill gaps and create a more airtight barrier, improving energy efficiency.
- Cellulose: Made from recycled materials, providing a green option. Cellulose insulation is environmentally friendly and provides good thermal performance.
Cost vs. ROI
Attic insulation costs between $1,500 and $4,000, with an ROI of 80-90%. Investing in attic insulation can lead to substantial savings on energy bills and make your home more comfortable year-round.
Trust Enzo Design Build To Add Value To Your Home
Investing in the right renovations can significantly enhance your home’s value and rental income, especially in a competitive real estate market like Vancouver. Now that you know how much ROI a renovation might bring you, why not learn about how to organize a renovation?
Whether it’s a kitchen remodel, bathroom upgrade, or adding smart home technology, each improvement brings substantial returns. If you’re considering home renovations or improvements, then give us a call or contact us today. We can help you learn more about how we can assist you in increasing your home’s value.
Author
Gia Flores
Gia Flores is the Digital Marketing Specialist at Enzo Design Build Inc., where she drives awareness of their superior renovation and construction services within the construction industry. Her strategic marketing campaigns skillfully highlight the craftsmanship and innovative solutions Enzo offers, drawing in clients throughout Vancouver.
