You have an older home with a traditional style; on the other hand, you are not on Cape Cod. Real cedar shingles are authentic and may be most appropriate if you are in a neighborhood that has architectural limits on materials (CC&Rs).

Whether you see a return on investment depends a great deal on the local market. A realtor in your area is probably in a better posiiton to advise on that point. In my experience a homes value is primarily determined by location (comparable values) condition and size. Features such as siding material, window type, floor coverings are amenities that may affect how fast a home will sell, and who it will appeal to, but miminally affects value.