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Home Renovation Return On Investment: The Lowdown

home renovation return on investment

Purchasing a property is a dream for many people in the UK. Not only does property ownership mean freedom from the rental market but it also means that you have a place to stamp your mark on. However, it also means responsibility…

When you own a property, you have the responsibility to maintain it, from the structural side of the property to the value side of your home. For many people, owning a home is a chance to increase the value and hopefully land a profit when it comes time to sell.

Home renovations can come in all shapes and sizes; they can be as small as changing the carpet, and as big as adding an extension. Most property renovations are great for making a property unique, but not all of them are great for to getting a return on investment.

For home renovation return on investment, you need to be a little careful with what you upgrade and the type of materials you use, as the following article reveals…

home renovation return on investment

Home Renovations: How Can I Get The Best Return On Investment?

In a business sense, return on investment means deducting the investment cost from the investment gain. For purely financial investment, such as purchasing and selling stocks, this is fairly easy to work out.

However, things get a little complicated when you look at property investment returns.

First, you have to look at the long-term return on investment, such as with the example of a new carpet.

A new carpet may cost you £100, and it may add £50 to the value of your home. This is technically not a good return on investment, in fact, you’ll be losing £50.

Second, you have to look at the short-term return on investment. Perhaps that new carpet was installed to replace a worn-out carpet with a big stain in the middle.

The old carpet would never have attracted buyers to a property, instantly giving the new carpet a value that can’t easily be calculated. Maybe purchasing that carpet saved you £50 that you would have otherwise spent on a rug to cover the stain, instantly giving the carpet additional monetary value.

There are a lot of ways to look at home renovation and return on investment. One of the best examples you can use to really explore beneficial improvements, is spray foam insulation.

Spray foam insulation is a product with long-term and short-term value, both in abundance; not to mention being one of the best home improvements on the market.

home renovation return on investment

The extent to which you’ll save money on your heating bills will vary, depending on where in your home that you have insulation installed, and how much spray foam there is

Spray Foam Insulation: Short-Term Return on Investment

The short-term value of spray foam insulation can easily be seen by looking at the savings made each month. In the case of insulation, this will be on your energy bills.

The extent to which you’ll save money on your heating bills will vary, depending on where in your home that you have insulation installed and how much spray foam there is.

For good loft insulation in a detached home, you can expect to save around £215 per year.

Then, you have to factor in the short-term returns on your investment that are not financially based, but still can’t be ignored. Spray foam will:

• Increase the comfort in your home
• Improve the quality of air and protect against pollutants
• Protect against heat loss in the winter
• Prevent too much heat gain in the summer

home renovation return on investment

Water damage, pest damage, and weather damage can cost thousands in repairs that spray foam insulation can help to prevent

Spray Foam Insulation: Long-Term Return on Investment

Long-term return on investment with spray foam insulation is where the largest returns are going to be seen, and perhaps not from the places you were expecting.

There are a couple of ways that you can look at return on investment long-term, with the sheer buyer-appeal of an energy-efficient property being a main one.

The monthly savings and the increased comfort of an insulated home are always going to be a big selling points, with eco-friendly homes potentially increasing the value of the property by 6%. On top of this, a quieter home is easier to sell, as is a warmer one.

Then you can delve into potential long-term savings made by having spray foam installed. Spray foam prevents damp, helps secure a building structurally, and protects your home from pests like termites.

Water damage, pest damage, and weather damage can cost thousands in repairs that spray foam insulation can help to prevent.

For both long-term value and short-term value, spray foam is an excellent choice. You’ll find that with a bit of research, there are plenty of home improvements that offer similar returns.

From improvements that you’ll love, to improvements that add value, here at Home Logic, we are always ready to lend a helping hand. Need advice on the best improvements to increase your property value? Give us a call today on 0800 1700 636, or simply click the button below!