Why remodeling your home is a good investment
Remodeling is a great way for homeowners to increase functionality and beautify their property. If you choose wisely the best place to upgrade your living spaces. Most of your time is spent in these areas and if you’re looking to sell the new homeowners will appreciate the upgrade and you may add value to your property in the process.
While the quality of the real estate market in your area is important to consider when selling, so is the quality of work you do for your home renovations and improvements.
There are several things you can change that are proven to add value to your property. Projects such as kitchen and bathroom upgrades, adding a wood deck and window replacement have usually given the highest return of investment irrespective of the market condition and property’s location. If you are an investor who chose to remodel a rental property, you can as well recover the cost of the improvement by increasing the rental rates.
On the other hand, homeowners have to be careful in choosing the projects for completion because the potential profit for remodeling can only be gained if there are buyers who are willing to pay the cost of renovations.
Any type of project must be appropriate for your neighborhood and the area of a local property. Home improvement costs should not exceed the average cost of the neighboring houses. If you have a greater cost of improvements than the average houses around your property, it may not add much more value to your house.
Moreover, you should also consider how long would it take for improvements to raise the property value. Compared to kitchen and bathroom upgrades, design and structural improvements like building additions or finishing spaces will do more increase value but over a much longer time.
Since mortgage interest can be deducted from income taxes, the government may contribute to subsidize home improvement that will make construction cost less burdensome on the part of property owners.