Five years after the lowest point in the recent economic recession, people are slowly picking their selves up and finding worthwhile investments they can pool your savings into for maximum profit. As it turns out, the very cause of the recession – the housing and mortgage bubble – is just the right place to start investing. Home improvement projects are becoming quite the profitable ventures.

In a news release by Reuters on January 30, 2013, Taylor Morrison Home Corp and Tri Pointe Homes LLC are the first two of private home builders that will go public in ten years after the US housing industry plummeted due to the recession. These two companies saw the sense in taking advantage of the slow yet steady pace with which the US housing industry is recovering. 2013 is a good year for home improvement projects as they deliver promising return on investment through increased home equity and value. Here are three such home improvement projects:

  1. 1. Plumbing and Electrical Repairs

Average Plumbing Cost per Leak: $175.78

Average Electrical Cost per Outlet: $209.51

ROI: 260%

A lot of homeowners tend to invest money on improvement projects that add aesthetic appeal to their homes. They tend to overlook that putting money into updating functionalities such as plumbing and electrical systems in the home can actually yield an average 260% ROI for American homes.

Think that a leak, no matter how small, has the power to pull your home's cost down when you put-off repairs. The same goes for faulty electrical wiring. It can put your family's life in danger too. Updating your plumbing and electrical systems will not only bolster your home’s equity, it also helps save on maintenance costs. For instance, repairing leaks helps conserve water. It also helps keep the home sanitary.

While plumbing repairs normally consist of fixing leaks and replacing pipes, they are actually done as part of landscaping, bathroom remodeling, and kitchen renovation projects. When pipe insulation wears off, it may also require plumbing services. Installation of mounted lighting fixtures, wiring for appliance updates, and installation of electrical systems in new rooms in the house typically count towards electrical repair and maintenance tasks.

  1. 2. Bathroom and Kitchen Remodeling

Average cost of Kitchen Remodeling: $27,000
Average cost of Bathroom Remodeling: $17,500
ROI: 168%

The value of a home has a lot to do with the condition of its bathrooms and kitchen. Whether you'll resell or put your home up for rent in the future, you can expect your prospects to scrutinize the condition of these areas.

Check these facets of these areas of your home:

  1. Electrical systems, lighting, and appliances (if any)
  2. Plumbing systems for sanitation
  3. Convenience and ergonomics especially in the kitchen

Here’s a tip: make the most of the home improvement crew for your renovation project. Grab this chance to have them check on the condition of your plumbing and electrical system. If any amount of repair is needed, you can be sure to have a discount in services fees if you'll have the same kitchen and/or bathroom renovation crew work on the plumbing and/or electrical repair.

Kitchen remodeling is often undertaken to improve working space and storage. Re-flooring, countertop work, and upgrades or repairs of kitchen appliances are also included in the scope of the project. Bathroom remodeling normally entails bath tub scrubbing or re-coloring or replacement, installation of modern pedestal sinks and fixtures, repainting, re-installation of bathroom tiles and maintenance or repairs in plumbing and lighting.

  1. 3. (Re)Painting

Average cost of painting a home per 100sqm: $459.88

ROI: 112%

Repainting your home will give you at least three benefits:

  1. Painting is the house equivalent of a facelift
  2. Painting your walls protects it from environmental conditions that can render them susceptible to mold and mildew infestation that can even affect the walls’ durability
  3. Painting instantly raises your home's value

Don’t pull punches when it comes to the material used in painting either; the ROI you gain from investing in good quality paint and even from the service of trust-worthy professionals will be worth it. The focus for painting or repainting projects is the walls and ceilings. You should also consider specialized paint to deter corrosion in metal fixtures. In fact, metal spray paints are a quick fix for furniture bases, metal columns and balusters that have lost their original luster.

Bonus Home Improvement Tips

If you think that your home deserves a facelift so you can boost its value but you don’t know where to start, here are a few things you can do:

  1. Consult your realtor. He can give you the most substantial and realistic figures on your property’s value and what you can do so that your home will be competitive in the current state of the market.
  2. Consult a designer. When you feel that your home or any part of it needs remodeling but you are not so sure what you need to get done. You may need to shell out around $75.00-$130.00 on consultation fee but the help you’ll get will be priceless.
  3. Get an electrical audit report. Power service providers give audits for free so make use of them. The wiring repairs could be (and typically are) more urgent than your need for a granite countertop.

Just like any investment, home improvement projects require adequate funds and a lot of forethought and planning. Think about it, consider your options, be creative but be reasonable and realistic too. Good luck!