My wife and I bought our first home this year. We got a good price and live modestly so our fixed expenses are only about half of our take home income. Due to Canadian mortgage rules we opted to put 20% down to avoid CMHC fees. This set us back to zero savings for a couple of months. As of my next paycheck our cushion fund will be back to status quo so we aren't worried about emergencies.
Moving forward I am wondering about how to approach home improvements as investment. I understand that things like kitchen and bathroom improvements often offer better than 100% ROI so we are planning on making strategic improvements to our property and building sweat equity wherever possible. I am wondering about, what is a safe percent of investment capital in a single fixed asset like a fixer upper home?
Additional info: Planning to sell in 4-6 years.
Edit: Not enough reputation to comment here, so in an edit. It's pretty annoying that the title was incorrectly edited and that all of the answers are to the title rather than the question I asked so I will elaborate.
My question is regarding the rate at which it is sane to do invest in improvements. I understand that it would be very risky to put all of our investment power towards home improvement. What is a safe split of future investing power between fixed assets (like a home) and liquid assets (like stocks and funds)?