Home Improvements: Is It Worth the Cost?
July 23, 2009 by Miranda Marquit
Filed under Finance
We bought our home as new construction. As a result, we have had to put in a yard. We also put in a fence. I know my husband is hoping that it will raise the value of our home enough to cover the costs, but I’m not so sure — especially after looking at the data provided by Remodeling Magazine.
I see that “fence” isn’t listed. But it appears that we are most likely to recoup between 70% and 80% of our costs. CNN Money makes this point about home improvements:
But to the extent these figures are accurate, the report shows that purely as an investment home improvements don’t measure up. You’re not likely to get even your original principal back let alone a return on it.
Of course, there are some non-monetary advantages to home improvements. You end up with a more comfortable home, that may give you more pleasure. For us, having a fence provides a certain level of safety and security for our son when he plays outside. And we like the privacy and the look of the fence. Whether we completely recoup the cost is not our main concern, and we are reasonably pleased that it may mean a slight advantage when it comes to sell.
You should make home improvements because it enhances the quality of your life, not because you are expecting a return on your money. Odds are you’ll only get 50-60% of the cost back when you sell.
Making home improvements could also benefit your home’s security. Just be careful not to improve your home too much, giving intruders places to hide and room to roam. http://www.homesecurityadvice.com/tips/secure-plants-trees.html has great ideas and tips to help you when making your home improvement choices.
the article really interesting and good for home improvement, coincidence I was discussing about the home improvement on my blog
Home improvement is one way to express your own feeling and personality. It is not just for you but also for the benefit of your family. It is worth it. Once you always think of the expenses for improvement, you will eventually lose your hope to beautify in your own. You should always have the motivation that will always begin in your good attitude to have a positive solutions on everything.
That was my conclusion, too! Expecting to profit off of home improvements will only set you up for disappointment.
And when you consider that many home improvement projects are not funded from cash, but are financed in some way, the actual cost is often much greater than the initial purchase price of materials and labor.
Excellent point, Gregg! The interest costs spread out over the life the loan are rarely offset by advantages in tax breaks. And it just adds to the cost.
Right. Financing any significant home improvement and even the initial purchase of a home is pretty unavoidable for most of us today. But if we could pay more attention to the true costs, I think we’d make better decisions along the way.