Which home improvements will give you the best return on your investment in Cayman?

Certain home improvements can add value to your Cayman Islands property when it comes to selling it — but before you embark on expensive remodelling projects, make sure you’re not investing more than you’ll add in value.

Few, if any, home improvements will return the full cost a year down the line, and some — such as building a pool or home cinema — may cost many times more than the value they will add. So which improvements should you invest in, and when should you do so?

Home improvements worth investing in

Kitchens and Bathrooms

Kitchens and bathrooms are the rooms that have the most impact on the buyer.

Other rooms, when emptied of furniture, are merely four blank walls and windows with not much to like or dislike, whereas kitchen and bathroom fixtures are just that – fixed – and therefore impact the functionality of the spaces. These are also the rooms that will show the most wear and tear, and which will start to look dated in time.

However, a full kitchen or bathroom remodel can easily run to tens of thousands of dollars, without that investment necessarily translating to added value.

Generally speaking, a minor remodel – which costs less and delivers better ROI – is a savvier choice. Kitchen improvements worth making include:

• new kitchen appliances (opt for energy efficient ones)
• refinishing existing cabinetry
• replacing countertops
• updating hardware

Outdoor spaces

The pandemic has given us all a renewed appreciation for private outdoor spaces, so improving the yard, deck or garden area will surely add to the appeal for potential buyers.

Some straightforward enhancements to make outdoor spaces functional and versatile include:

• planting low maintenance trees, shrubs or flowering plants
• installing paving or decking
• adding outdoor lighting
• installing a shade system, such as an awning or pergola

Flooring

Replacing worn, damaged or dated flooring is a simple way to freshen up the look of a home and delivers a good ROI. While in some parts of the world hardwood floors can be a great addition, the climate in the Cayman Islands does not make this a good option, but wood-look tiles which are durable, weather resistant and can be installed both indoors and outdoors, are a popular choice.

Fresh paint

Nobody wants to move into a property that feels grubby or stained by previous owners. A coat of paint is a very economical way to freshen up interiors and make them feel clean and new.

As with all improvements made with a view to selling, keep colours neutral and light: while bold colour choices may add style and character for you, they won’t necessarily be to the buyer’s taste.

Energy Efficiency

Given that electricity is one of the most significant monthly household expenditures in Cayman, some less-visible upgrades that make a property more efficient will appeal to buyers. Possible improvements include:

• insulating roofs
• installing solar panels
• low energy air conditioning systems
• hurricane rated Low-E windows

Home improvements you should NOT make

Not all home upgrades or improvements are equally worth making. While everybody needs a functional kitchen and bathroom, not everyone needs a home gym or cinema.

Equally, investing in a pool or hot tub may enhance your experience of living in the property, but it’s not necessarily high on a buyer’s list of priorities.

Think carefully about whether the improvements are universally appealing or a personal choice: while you may love travertine floors, marble countertops or other luxury finishes, they won’t always be appreciated by buyers.

This does depend to a certain extent on the area you live in. In a prestigious neighbourhood these might be sought after features, but in a mid-range area they may not be in keeping with the average home.

Do your research and ask your realtor about property prices in your neighbourhood: there is likely a ceiling price and if your investment in improvements pushes the asking price above that, it’s likely not a wise investment.

When to make home improvements

Don’t leave making home improvements until you want to put your property on the market. Many homeowners do this, thinking it will make the property more saleable, or enable them to ask for a higher price.

In reality, however, it’s often better to make improvements before you’re even thinking of selling.

If you spend $20K on a kitchen remodel just before you sell, but it only adds $10K to the value, that is $10K wasted.

However, as property generally appreciates, over time those improvements pay for themselves. If you did that $20K kitchen remodel five years before you wanted to sell, the property would likely have appreciated in those five years enough to cover the cost of the work AND you’d have spent five years enjoying living in a home with a beautiful new kitchen. It’s a win-win.

If your home is ready to sell and you’re considering moving, find out which areas we believe are ripe for investment in the Cayman Islands.