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Last Updated on February 19, 2025 by Alaina
Investing money in home improvements should always have a good return on investment (ROI). Whether that means creating a bigger living space, enhancing your lifestyle, or increasing your property value, it’s important to ensure your hard-earned money is well spent. But are all big home improvements truly worth it? And do they actually pay off in the long run?
Some home upgrades can add thousands to your property’s value, while others may only make a difference in comfort and functionality rather than monetary value. Below, we take a closer look at some of the most popular big-ticket home improvements and whether they offer a solid return on investment.
Kitchen extension
For most people, the kitchen is the heart of the home. It’s no longer just a place to cook meals; it’s a gathering space, a spot for entertaining, and often part of an open-plan living area. Because of this, a kitchen extension often tops the list, and for good reason.
Expanding your kitchen can create a more functional space, allowing for a larger dining area, an island, or even a walk-in pantry. But does it actually pay off financially?
A well-designed kitchen extension can add up to 20% to your home’s value while also making it far more appealing to potential buyers. Since many people consider the kitchen the most important room in a home, having a large, modern, and functional kitchen can be a deciding factor when it comes to resale.
If your goal is to increase property value, it’s important to focus on high-quality finishes and timeless designs that will appeal to a broad audience. On the other hand, if you’re upgrading purely for your own enjoyment, you can customize it to suit your exact preferences. Either way, a well-planned kitchen extension is an investment that is almost always worth it.
Bathroom upgrade
After kitchens, bathrooms are one of the most influential rooms when it comes to home value. A dated or worn-out bathroom can lower the perceived value of a property, while a modern, spa-like space can make a home much more desirable.
Even if you’re not planning to sell, upgrading a bathroom can make a big difference in your daily routine. Features like a rainfall shower, a double vanity, or energy-efficient fixtures can transform the space into a true relaxation zone.
When it comes to return on investment, a renovated bathroom can increase home value by 5-6%. Homes with updated bathrooms tend to sell faster and for higher prices, as buyers are more likely to pay a premium for a move-in-ready home. A bathroom remodel also improves functionality, making it easier to maintain while adding a touch of luxury.
If you’re on a budget, small updates like fresh grout, modern fixtures, and updated lighting can still make a big impact without the need for a full remodel. However, if you’re planning to stay in your home long-term, investing in a high-end bathroom renovation can be well worth it, both financially and for personal enjoyment.
Loft conversion
An unused loft or attic is nothing more than wasted space, but converting it into a livable area can be one of the best investments you make. Whether it becomes a bedroom with an ensuite, a home office, or even a guest suite, a loft conversion can significantly increase your home’s square footage and value.
Since a property’s square footage plays a major role in determining its worth, adding more livable space can result in a 20% or higher increase in property value. This makes a loft conversion one of the most cost-effective ways to expand your home without sacrificing yard space. It’s also a great solution for growing families who need additional bedrooms but don’t want to go through the hassle of moving.
The cost of a loft conversion will depend on the type you choose, such as a rooflight conversion, a full dormer, or an L-shaped extension. Location and finish quality also play a role in the overall cost. However, no matter what type of conversion you opt for, the end result is additional living space that enhances both functionality and resale value.
Outdoor Living Space – Patios, Decks, and Gardens
Outdoor space is more valuable than ever, especially as more people look for ways to entertain at home. Adding a deck, patio, or landscaped garden can significantly improve both lifestyle and resale value. A well-designed outdoor area creates an extension of the home, giving homeowners a place to relax, entertain, and enjoy the outdoors.
A beautiful backyard or patio space is also a major selling point for buyers. Features like fire pits, outdoor kitchens, pergolas, and comfortable seating areas can make a home feel more inviting and functional. Since first impressions matter, a well-maintained yard and outdoor living area can boost curb appeal and make a property stand out in a competitive market.
The return on investment for outdoor improvements can vary, but on average, a well-designed outdoor space can increase home value by 10-15%. If you’re planning to stay in your home, the benefit is even greater since you’ll get to enjoy the space for years to come. Choosing low-maintenance landscaping and durable materials ensures that your outdoor space remains beautiful with minimal upkeep.
So Are Big Home Improvements Worth It?
Big home improvements can pay off, but only if they are planned wisely. While some projects, like a kitchen extension or loft conversion, can dramatically increase property value, others may offer more lifestyle benefits than financial returns.
Before making any major investment, it’s important to consider both short-term and long-term benefits. If an improvement will make your home more enjoyable and comfortable while also adding value, it’s likely a worthwhile investment. However, if the project is purely for personal preference and has little impact on resale value, you may want to carefully evaluate whether it’s the best use of your money.
The key to making big home improvements that truly pay off is to strike a balance between practicality, cost, and market appeal. By carefully selecting the right upgrades, you can ensure that your investment enhances your home’s value while also making it a better place to live.