As a homeowner, you have probably entertained the prospect of making home improvements. Home improvements can enhance your lifestyle, add years to your house and increase its future resale value. Whether you are considering a major remodeling project or a minor cosmetic touch-up, there are several factors to consider, including, how long you plan to remain in your home and what improvements will add the most value and/or life to your home.
HOW LONG DO YOU PLAN TO REMAIN IN YOUR HOME?
If you plan to stay in your home for the next 10 to 20 years, extensive renovations that will enhance your lifestyle may be worthwhile. In addition to adding value to your home in the long run, major improvements can make your home a place you will be more comfortable living in for years to come. However, if you plan to move within the next few years, it may make more sense to limit yourself to minor repairs and cosmetic improvements, the type that will make your home more appealing to prospective buyers.
THE MOST WORTHWHILE HOME IMPROVEMENTS:
The return on your investment into home improvements may not always be financial. But, what you can expect as a financial return is certainly a factor to consider when determining whether to make improvements to your home. If you are improving your home to enhance your lifestyle, a significant financial return is less important; if you are making improvements to increase your home’s resale value, it is more so.
The following are some home improvements that will typically yield a worthwhile financial return on your investment.
(i) Painting the exterior of your home.
(ii) Upgrading your landscaping.
(iii) Laying down new flooring and/or carpeting.
(iv) Wallpapering and painting inside your home.
(i) Remodeling your kitchen. It is typically advisable to purchase the best flooring, cabinetry, countertops, and appliances that you can afford. The average cost of a kitchen remodel is $25,000 to $60,000.
(ii) Adding a bathroom. An additional bathroom will not only make your life more comfortable, but it will also add great appeal to prospective buyers. The average cost of adding a bathroom is $15,000 to $22,000.
(iii) Updating or remodeling existing bathrooms. An older bathroom tends to date the home in the eyes of the buyer. An average bathroom makeover generally runs from $5,000 to $15,000.
(iv) A deck or a patio will serve as a welcome extension to your home for casual outdoor entertaining. The cost averages $3,000 to $$6,000 for a patio and $5,000 to $15,000 for a deck.
(v) Adding a garage or enclosing an existing carport is a valuable enhancement to older homes that do not have these amenities. The average cost for these improvements ranges between $10,000 and $20,000, but could be considerably more.
(vi) Repairing or re-roofing your house will not only enhance the life and curb appeal of your home but will also significantly boost its resale value. Do not be tempted to limit roof repairs to cosmetic work; it will not yield the same return as doing the whole job. An average repair may run from as little as $100 to as much as $1,000. Re-roofing averages from $3,000 to $13,000, but may be significantly higher.
Any capital improvements that you make to your home, can count in your favor for tax purposes – so make sure to keep your receipts and records. Be certain to use a reliable contractor and licensed professionals. Making improvements to your home can be a daunting prospect – but the right improvements are worth it!
Good luck with your home improvements!!!