Home Renovations as an Investment
December 21st, 2009
A recnet article on CNN Money shows that the return on investment on home renovations has been decreasing over the past few years.
A chart within this article shows that in 2003 the average remodeling job costs $38,285 and would increase the home value by $31,591 vs average 2009 costs of $50,908 and increase of home value by $32,497.
Does anyone see anything wrong with this picture? An investment in renovating your home in a good year (2003) would net you a -21% return on your investment. In a bad year (2009), you would net a -35% return.
For most people, your home is not going to be a good financial investment, rather it is a lifestyle choice.
- tim
Categories: Housing