A lot of people believe that the minute they renovate their property, it becomes a lot more valuable. This is true to a degree comma but CBI Tulsa believes it is equally important to really do the math. If a home improvement, for example, cost $50,000, and the value of the home increases by $30,000 as a result, the reality is that there is no return on investment. One of the things this highlights the importance of knowing exactly why someone may want to do a home improvement.
CHI Tulsa on Reasons for Home Improvement
The vast majority of people invest in a home improvement not because they want to increase the value of their home but because they want to increase their own enjoyment of the property. Different reasons for Renovations bring with them different methods of renovating. Indeed, what matters to want may not be what matters to the other and this further complicates the determination of whether or not there is a return on investment by increasing the value of the home. Some reasons for renovation include:
- To increase how much rent a landlord can ask for their property.
- To sell a property for a greater value.
- To modernize a property and thereby make it more comfortable to live in.
- To add space to a property, thereby avoiding the need for elderly care period
Clearly, these are all very different reasons for home improvement comma making it more difficult to determine whether or not these improvements really make a property more valuable. Not just that, the reasons behind the need for renovation but also determine what a good budget is. For instance, someone who wishes to sell a property for greater value could do renovation as easy as repainting walls. The mathematical calculations also become a lot more complicated if someone ends up holding onto their property. For example, if somebody adds a granny annexe, this might be a significant initial expense, but if that means they’re elderly relative does not have to move into assisted living, thereby saving high monthly cost for many years, the high expense will be worth it.
In essence, any renovation add value to a home. However, not any renovation provide a return on investment. For instance, changing double glazing in a property will significantly increase the value of the home, but usually not by as much as the cost of the windows. This is why the recommendation is to change the windows several years before selling the property, as the added value will hold and the return of investment will therefore come by the reduction in energy bills while you still live in your property.
To other home renovations that certainly increase the value of a home are a kitchen renovation and a bathroom renovation. Both can be done reasonably cheaply, which would lead to a return on investment. If you, however, decide to put a kitchen in with the most modern appliances possible, then it is unlikely that you will see a full return on investment.