Return On Investment by Darrin DeRoches February 3 - 9, 2011 I keep getting asked what is the best return on my investment when it comes to renovating. The top five Returns On Investment (ROI) 1. Painting 2. Build income suite 3. Renovating Kitchens and Bathrooms 4. New Flooring 5. Lighting and Fixtures.     Painting is the most cost effective way to improve your property.  You will freshen up the property and it can be a do it yourself project.  The key is to pick neutral tones and do a professional job. Take your time and make sure it looks like a pro did it or better yet employ a professional.  The ROI will be 100 percent if the the job is done right!     Build an Income Suite is number two ROI even though it can have a return of 150 to 200 percent.  The reason it is number two is because there are only certain homes in certain areas that an income suite will pay off.  In Toronto this is number one since it will dramatically increase the value of your home and the rent will pay for the Reno over time.  In our city this income suite would have to be located in the right neighbourhood.  That being said, if you have a home close to the college, university, westend etc., you should consider this investment.  A proper plan and the proper location can increase the value of your home.  The increase in value and the rent collected will easily pay for the income suite in a short period of time.     Kitchen and Bathrooms will give a return of 75 to 100 percent of ROI.  This good thing is these rooms sell houses.  The bad thing is these rooms go in and out of style quickly.  Timeless or classic styles stay around for years but modern or over stylish kitchen and bathrooms can only last so long. Try to stay away from trends when renovating a space since you may enjoy it for now but when you go to sell in a couple of years it may already seem dated.     New flooring can bring a return of 70 to 90 percent of ROI.  Here again you have to watch on the selection of materials and colours.  Dark floor tiles have been pretty popular but neutral color tiles can stand the test of time. Hardwood is always good but going totally dark may look good today but may date the room in a couple of years. Flooring can be very expensive to replace so think of the ability to change the room colors and style without changing the floors.     Lastly is lighting and fixtures. They will bring in around 70 percent ROI. This can be the simplest update in a home. Just changing the outlets and the covers can update the home. One strong light fixture can change the feel of an entire room. Change all the door handles from gold to silver or black and you will see the difference.  We just updated our mailbox and now we do not feel embarrassed every day when the mailman comes _ ours was gold. Ouch! V