Comments on: Is Home Remodeling Really an Investment? Is Remodeling Worth it?

By: CG

CG — Mon, 06 Dec 2010 12:23:10 +0000

The things that give you a return of capital (gotta have return of capital before return on capital) are usually the small things, like painting, fixing dents, fixing plumbing, etc.

Large remodeling projects are an expenditure, pure and simple. You do it to make your home more livable and more enjoyable. Years down the road, you can recover some of the cost in the form increased resale value, but it’s really for enjoyment. It’s like a vacation, you spend money now and hope for some fond memories later.

By: Xtreme

Xtreme — Sun, 29 Aug 2010 14:44:14 +0000

Alight. I am a general contractor and I can tell you 90% of the remodels I have done have generated a return over what they spent. There is a trick to making money on a remodel….don’t get carried away with “fancy” features. No one is going to care about your heated floors, rare granites, faux painting, or rare construction products such as Fancy wood, travertine or a faucet that was hand made out of cast iron. Yeah, of course a buyers is going to like all of the upgrades but they want it at a cheap price. If you spend money on all those “fancy” products, you’ll never make money on a remodel.. Keep it simple but modern. Don’t go over board and I can tell you the money you put in your home will come back to you and then some.

By: Four Pillars (Mike)

Four Pillars (Mike) — Sat, 08 May 2010 01:24:17 +0000

Great post. I agree that too many people just think in terms of how much their “investment” will increase the value of their house (while ignoring the cost of the remodel).

I do think there is a component of remodeling that doesn’t involve investment. If you want a nice kitchen and will use it and enjoy it for the next 10 years then that has to count for something.

If you are fixing up a home to sell it – then you have to look at only the dollars and cents.

By: Friday Link Roundup – Mother’s Day Edition

Friday Link Roundup – Mother’s Day Edition — Fri, 07 May 2010 10:23:21 +0000

[...] Evan from My Journey to Millions asks Is Home Remodeling Really An Investment? [...]

By: Daddy Paul

Daddy Paul — Thu, 06 May 2010 03:29:11 +0000

I donâ€™t think home remodeling is ever an investment. Some things just need to be fixed or replaced. Do you want them fixed for you to enjoy or someone else who buys your place?

By: Evan

Evan — Wed, 05 May 2010 04:47:22 +0000

See that Makes sense! You are putting in X to get X+Y%. That is real ROI.

By: Evan

Evan — Wed, 05 May 2010 04:45:51 +0000

I’d agree there is a difference between upgrading and specific remodeling, but in my neck of the woods there are plenty of homes that have 70′s kitchens. My problem would be understanding a homeowner (especially if they want to sell) putting in $75K to increase the home value less than that 75K

By: Evan

Evan — Wed, 05 May 2010 04:36:19 +0000

While a happy cook is PRICELESS, I don’t get the

“I donâ€™t think itâ€™s fair to go into a home renovation project and immediately expect to recoup your investment.”

But then your investment would be compounding less than the investment the money was in.

By: Mike - Saving money Today

Mike - Saving money Today — Wed, 05 May 2010 02:52:59 +0000

We’re actually about to start a construction project at our home. We have a 3 season porch that we’re insulating, replacing windows, adding a closet, etc so we can call it a bedroom when we go to sell. We’re also partially finishing the basement and adding a half bath there.

Basically we’ll be going from a 2 bedroom, 1 bath with an unfinished basement to a 3 bedroom, 1.5 bath with a partially finished basement. I think it we’ll get our money back and it will make the house a lot more desirable.

By: FinEngr

FinEngr — Tue, 04 May 2010 17:06:05 +0000

That excerpt from About.com is total crap. So if you purchased a home in the 70s, outfitted it with linoleum floors and orange carpet, lived in it until now – how much would it be worth?

Nothing – b/c jacqjolie would be ripping it all out.

The basis for renovations should be general improvements. Once you get into custimizations, you shrink the candidate pool of potential buyers. Just think of those hooked-up lowrider or racing cars.