Any remodeling in the kitchen, making it lighter, brighter and a more useful room adds a lot to a home's value. Another good move is to add a bathroom. On average, this will bring back 92 percent of the costs. Viewed in the right context, this is actually a bountiful return on investment. For another, you can't compare remodeling investments to financial investments, like mutual funds.
People add a bathroom rather than going on a cruise or buying a new car.
There may be better investments out there, but your new kitchen won't lose half its value the minute you make your first meal in it, the way a new car will lose a huge chunk of its value the minute you drive it off the lot. One way to keep from taking a similar hit on your remodeling is to think cosmetically. But knocking out walls is quite another. You just don't get the same payback on a full remodel. Home improvements are one instance where it's a good idea to keep up with the Joneses.