Return on Investment is a phrase that quantifies how much an investment returns compared to what you spent on the investment. For example, if a homeowner remodels a kitchen, and the home sells for a higher price (after covering remodeling costs), then they achieved a positive return on investment. It is important to remember, though, that not all improvements guarantee additional profits.
General guidelines suggest that you should not spend more than 20% of your home's value on an upgrade of the kitchen. And beware of "trends" - these are the fashionable upgrades that are popular in the moment, but may not be practical in the long-term. Media rooms, spas, and wine cellars all seem like great features, but they tend to cost more to put in than you may get back in return.
Here are the 5 top projects that contractors and real estate professionals consider the best return on investments:
- Interior Painting
- Heating Cooling systems
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