Most people go for home renovation to change the look of their homes. They upgrade their kitchen, add a bathroom or even build a deck. This not only helps in making the house look different but also makes day to day living more enjoyable and practical. But something more important is the role that investment remodelling plays in all this. It is an important consideration from finance point of view for all home owners.
Today, the market is very uncertain and therefore it is important that you monitor all the possible consequences of remodelling. The former belief of investment remodelling paying for itself has been proved wrong. So, whatever investment is done in remodelling must be justified properly in the property value.
Investment Remodelling – Home Maintenance
Even from the financial point of view, it does make sense to keep your home well maintained. If you take care of problems when they are small they will never be any need of expensive repairs. Small problems, when ignored grow into large problems and require huge amount of money for repairing. Like a clog in the gutter if not treated at the right time can lead to big problems like wet basement and even bigger problem like pest infestations. This can severely hurt the sale value of your property.
Wise Choices for Home renovations & Return on Investment
Something like remodelling the kitchen or creating an even better master bedroom definitely adds to lifestyle improvement and the comfort levels, but any idea how do they add up to your property value? Many magazines keep publishing articles on how remodelling each room fares up in your return on investment.
Well, the reality today is very different from what it was in the past and the same goes for the future also. The prices may rise or may fall further. But if you go by current rates, then the return on investment has gone down by 2 – 3%.
Neighbourhood and Investment Remodelling
Though, the neighbourhood property value is not directly proportional to your property price, it will definitely have some relation with the rate of your property. If your property has the lowest rates in the whole neighbourhood, then investing in remodelling may be a good idea. It will help in increasing the rates of your property.
Home Remodelling or Home Restoration
Sometimes, due to accidents like fire or catastrophes, you have to renovate a part of your home. In such cases you may have two options. Either you upgrade the damaged part or just replace them. But on comparing, you will see that restoration will only recover the value of what was damaged but renovating will help you add value to your property. You can upgrade and get funds from insurance. At least a part of it can be recovered from insurance. So, it is always better to go for up gradation instead of restoration.