Don’t think that just because real estate is in a depressed state that it is not a good tome to improve what you have. It is an outstanding time indeed. Bear with me and I promise you that by the time you finish reading youll look at your home in a whole new way.
The best means for most of us to earn and save money beyond our salary is the equity in our home. Equity in a home can sometimes double in an amazingly short period of time whereas stocks and mutual fund investments typically top out at about 10%. But the losses can be aas quick as well; we’ve seen that in our very recent history.
These are the only two reasons you should consider remodelling your home:
- You like the neighborhood and community but just want a few more amenities.
- You see your home as the investment it is and want to seize opportunities that have tremendous value.
Reason # 1 requires very little reasoning. You know what you want and why you want it. You want to add a game room, or modernize your kitchen and master bath. You get a new position with a company in some other region and you cna telecommute but need an office. Regardless of the reason, you know what you want.
Reason # 2 is not so simple. Many people dont even consider it when they remodel or before they sell their home. Taking advantage of conditions to maximize your home’s value is the big focus here.
Keeping it simple, its strategically adding on to or upgrading your home to maximize your ROI within the neighborhood you are in. Putting it in more basic terms, if we can get more during the sale of the home than it cost for the improvement, we do it. If not, forget it.
Look at these situations:
Adding a third bedroom to a two bedroom home will most times return your investment. The same is true for adding a fourth bedroom to a three bedroom home. Add a sixth bedroom to a five bedroom home? Not likely. There isn’t much demand for 6 bedrooms so the price from 5 to 6 would be marginal at best.
You live in a 2,000 sq ft house on a half acre lot. A 3,000 sq ft home or larger is not uncommon in the same neighborhood. The market in your neighborhood will bear the price commanded by a 3,0000 sq ft home. You could easily add 1,000 more feet of area to the footprint and not worry about loosing your investment.
If homes typically sell for $180/sqft and it costs you $120/sqft, youve realized a $60/sqft profit, or in this case, $60,000. Don’t forget, modernizing will enable you to command a higher per sq ft price than what is the norm for homes sold in your area.
In either case you increase the value of your investment by developing it to its Maximum Potential.
Visit FinishingTouchRenovations for more ideas about Indianapolis Painting and any of your other remodeling needs.
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