The Best Return on Investment Home Remodeling / Renovation Project
If you're like most people, you're always looking for ways to make your home look nicer and increase its value. But what are the best home renovations to do if you want the highest return on investment? Here’s our take on finding generating positive returns on your home projects.
The Best Return on Investment Home Remodeling / Renovation Project
- Return on Investment (ROI) on classical renovation projects return 50-100% of their invested value
- Return on investment can increase by either increasing the amount sold, or reducing the amount invested
- IVORI Home Wall panels can return 325% ROI
- You can generate better time-value based returns by shortening the duration of the project
1) Identify the ROI on classical renovation projects
From this data published featured on the RBC Royal Bank website, we can see that most home improvement plans will range in return on investment between 50-100%. For the unacquainted, this means roughly for every $1.00 spent on the renovation, you will recoup $0.50 to $1.00. The return on investment metric broken down. See below for the cost recouped on a few other projects:
Sources: Select Renovation Project ROI https://www.remodeling.hw.net/cost-vs-value/2020/ https://www.rbcroyalbank.com/personal-loans/home-improvement-loans.html
2) Understanding Return on Investment
Return on investment is broken into two components, amount invested and amount returned. Simply put, there are two ways to increase your return on investment: Increase the amount sold, and/or reduce the amount invested. We know the perceived value that something is generally sold for is relatively fixed. But, what is in our control, is the amount invested in a project. Therefore, Reducing the amount invested in a project (perhaps you have a friend that can give you discount contract rates, or a supplier with less expensive materials) would help achieve a Greater Return on Investment.
3) Achieve Positive (Greater than 100% Returns) with IVORI Home
Take the average cost it takes to repaint an accent wall with a contractor. We’re looking at a spend of at least $2,000 according to homeadvisor.com.
We think that our panels could achieve similar returns at a fraction of the cost. Just 3 sets of our panels can cover the average wall in an American home (97.8sqft). The cost of this being only a fraction of what it would be to hire a contractor and create an accent wall.
Conservatively, we estimate that the amount sold would be roughly equivalent to a repainted wall (but we think it is worth more), which results in an ROI of 160%. Taking conservation out of the picture, on average our panels could recoup 325% to your invested value.
4) BONUS! Less Money spent upfront, less time spent upfront = Better use of Invested Capital
Lastly, we examine the amount invested and for what duration. The cost of self-installing our panels require less upfront cash than any other typical renovation process. Further, the installation time is much shorter. This implies the highest level of capital efficiency amongst home renovation projects.
Ivori Home Panels (Better Use of Capital) = Faster Renovation + Less Cash spent upfront
Select your panels below and get started on your home remodeling journey :)