There are various reasons why people decide to renovate their home. If you’re thinking of improving a property you already live in and plan to live for years, it’s rewarding to proceed with those plans, even if they don’t add a lot of resale value to your home. May be The reason is that you can enjoy the remodeled space.
But if you’re remodeling for the sole purpose of being able to sell your home at a higher price-whether you’re unloading the real estate you lived in or flipping the home-you really need to Be careful when investing in renovations. In fact, it’s important to remember this rule of thumb. Generally, the process of improving real estate does not return the full amount of the investment. Rather, you are fortunate to be able to regain most of your investment.
Of course, in some cases, remodeling a home pays, even if that means it won’t recoup your entire spending.you Real estate investor Who flips the house and you buy a house where the kitchen isn’t working. You might spend $ 50,000 to get it to work and get back that $ 45,000 on resale, but it’s still a move worth making-without a functional kitchen, the house in question won’t sell. Hmm.
However, there are generally certain refurbishments Do not Pay to pursue.In fact, according to Remodeling magazine Most recent Cost vs. Value ReportThere are three projects that I especially want to skip.
1. Addition of luxury master suite
Adding a master suite to a home that lacks a master suite is one thing. But consider this before going out for a luxury addition. The average cost of a luxury master suite is $ 356,945, but that only adds $ 165,359 in resale value to your home on average. This means that you can only recover 46.3% of your investment.
2. Addition of luxury bathroom
The average cost of a luxury bathroom is $ 114,773. And while that decorated bathroom may look like a great selling point, it only adds an average of $ 59,136 in resale value to a given home. In other words, you can only recover 51.5% of the cost.
3. Remodeling a luxury kitchen
It’s true that a great kitchen can attract buyers. However, the average cost of remodeling a luxury kitchen is $ 158,015, which only adds $ 83,025 to a typical home. This means that at the end of the day, you will only get back 52.5% of your investment.
Don’t be luxury
What is the common denominator here? Luxury, blown-out refurbishments are generally inexpensive.
Certainly, this may not be the case when remodeling a luxury home in a luxury home. But for the average home, luxury mods are generally not worth it-and it probably won’t make as much money as you would expect.
A better bet? Take a gentler approach to refurbishing bathrooms and kitchens and installing master suites. If you choose to modify the midrange, you may be able to recover more of your investment. That way, you can leave more money for other projects.
In fact, if you’re remodeling your home as a pure investment (for example, within the context of a home inside out), avoid these high-end touches and use your savings to expand your real estate portfolio in other ways. It is recommended that you invest in additional real estate or buy a real estate investment trust (REIT). There is nothing wrong with spending money to make your home look good. However, when you go outboard, you can be unhappy.