7 Must-Have Smart Home Devices to Invest In When Your Budget Allows

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Building a Smart Home: Key Upgrades to Consider

Creating the ideal smart home can be a significant investment. It’s crucial to make informed decisions from the start, as spending money on ineffective solutions can lead to even greater expenses later on. After dedicating my initial years in my current residence to DIY projects, acquiring furnishings, and landscaping, I’m now prepared to invest in smart home technology. Below are my planned upgrades that will eventually stretch my budget.

### Comprehensive Set of Smart Lighting

Smart bulbs represent one of the most straightforward enhancements for a home, although they come at a premium. For instance, a four-pack of Philips Hue color-changing bulbs, often regarded as the best in the market, is priced around $200. As a household that primarily uses Apple devices, bulbs compatible with HomeKit are essential—at least until the Matter standard becomes more prevalent, which could potentially lower prices.

Purchasing smart bulbs in bulk offers the most cost-effective solution, but it requires considerable upfront investment. To adequately illuminate most rooms, I would need at least two packs of these bulbs, not accounting for additional ambient lighting in the living room or under-cabinet lighting in the kitchen. For a statement light in the living area, I’m eyeing the Govee RGBIC Smart Neon Rope Light 2, which retails for $99. In the kitchen, I consider the LIFX 120” LED Lightstrip priced at $88, although I might need two units for our planned renovations. Altogether, the total cost for lighting could easily surpass $650, excluding any forgotten areas.

### Smart Outlets: A Far Better Choice

Smart plugs have repeatedly proven themselves as one of the most practical smart home upgrades. Although they add basic on/off functionality to various appliances, they can also be somewhat inconvenient. In Australia, the larger size of outlets can make it difficult to use two smart plugs simultaneously. Generally, plugs with additional features, such as power monitoring, tend to be bulkier.

The alternative is to upgrade the sockets themselves. By replacing standard outlets with smart ones, I could gain control right from the wall, eliminating the limitations posed by smart plug sizes. However, finding reliable, HomeKit-compatible wall sockets has proven to be a challenge, especially with safety in mind. Despite my efforts, I haven’t come across the TP-Link Tapo Matter outlet available in the U.S. that was recently reviewed. The $30 price tag per socket, when multiplied by the number I require and the cost of professional installation, could easily lead to hundreds of dollars in expenses. This is a project I plan to tackle shortly.

### Innovative Smart Locks with Palm Recognition

The motivation for investing in a smart lock stemmed from a past experience where I found myself locked out and had to pay a locksmith a significant sum to gain entry. This taught me important lessons: always remember your keys and consider that a smart lock could save you money over time.

Selecting the right smart lock has been challenging. Upon seeing TP-Link’s palm vein recognition technology revealed at CES 2025, I realized the potential benefits. Eufy’s Familock S3 Max, which also boasts this capability, entered the market shortly after. However, these new models command a premium price, with the S3 priced around $400. Despite the cost, the convenience of palm recognition, coupled with backup access methods like keypad entry and Apple Home integration, makes it a worthwhile investment. While it’s debatable whether I need both front and back door locks, I prefer to have comprehensive security solutions.

### Expanding the Home Audio System

Having had my first-generation HomePod since its launch, I’ve grown to appreciate its daily utility. Surprisingly, I’ve found ways to stream vinyl records to it via AirPlay. I now wish to acquire a second unit, as having one on each end of the living room would enhance the audio experience considerably. While one unit already provides excellent sound coverage, two create a fuller, stereo sound environment.

Additionally, incorporating a more compact HomePod in the kitchen appeals to me. I envision another in the master bedroom and one in the less-utilized “sun room.” I am even contemplating a budget-friendly model for the bathroom, though I worry about how well Apple’s speakers would fare in humid conditions. Altogether, this audio upgrade could cost approximately $600.

### The Case for an iPad

While I find the concept of an iPad attractive, I have yet to justify its necessity. I currently access news and social media on my iPhone, work on my MacBook, and rarely play mobile games. Nonetheless, I see the potential benefit of using an iPad for smart home management.

Although Apple is reportedly working on a dedicated smart home control panel, the iPad remains an excellent option for such tasks. Rather than investing in an expensive smart refrigerator, using an affordable iPad to control devices, follow recipes, listen to music, and monitor security feeds makes more sense. The baseline iPad starts around $349 and supports accessories like the Apple Pencil, making it a versatile choice. A simple wall or kitchen stand, along with a USB-C charger, would complete the setup.

### Investing in a PoE Injector

One surprising discovery was the ability to power smart home devices via a Power over Ethernet (PoE) injector. This device delivers both power and network connectivity through a single Ethernet cable, ideal for camera systems and access points. By eliminating the need for multiple cables, it streamlines the setup significantly and ensures continuous power without relying on Wi-Fi or rechargeable units.

PoE splitters are an even more advanced option, allowing the division of powered Ethernet lines to support additional devices. The total power requirement will depend on the specific applications, with PoE+++ offering the highest theoretical wattage. Although the initial setup may be costly, investing in laying Ethernet cables is likely justifiable for long-term benefits.

### Comprehensive Security Camera Setup

My primary motivation for establishing a powered Ethernet cable system is to implement a security camera network. While I’m less interested in indoor surveillance, monitoring the exterior is a priority. Setting up a reliable security system is costly—especially when planning for four or five cameras to cover all potential angles.

Higher-quality cameras tend to come with price tags reflecting their advanced features. For example, the REOLINK 8MP 180º Dual-Lens camera, which offers wide-angle 4K resolution with a spotlight, is priced around $140. More sophisticated models with pan-tilt-zoom features can be even more expensive. While potential for savings exists through bulk purchases, the upfront costs can be considerable. Given the importance of home security, investing in quality cameras that provide clear, actionable video is a prudent choice.

When constructing or upgrading a home, incorporating these smart home elements into your budget is essential. If you’re enhancing an older residence, careful planning is necessary to facilitate these improvements. Whichever route you choose, ensure you align with the right smart home ecosystem that meets your automation needs.