Whether the improvements are done for accounting reasons, to increase the value of our properties, to update or repair; the fact remains that remodeling, done in moderation, will increase the enjoyment of our homes and enhance our lifestyles. We say with “moderation” because you don’t want to invest so much into your house that it becomes by far the largest and most expensive in the neighborhood. Conventional wisdom says you are safe with the increased value as long as your investment does not push your house price to more than 20% of the median of remodeled homes in the area. “Remodeled”; because in most older and established areas you will see two tiers of property prices; the updated/remodeled is one and the original-older homes.
It is not uncommon that remodeled homes may become 3 or 4 times the un-updated houses of the same size. Certain items, like kitchen and bath, may yield better return on your investment than other items.
How much will it cost and what will it be if I finance it?
