This may seem absolute ludacris but it is the best time you’re going to see in quite some time to remodel your home. Try to follow my logic a bit and I promise that by the end, you’ll see some things perhaps you hadn’t before.
The best means for most of us to earn and save money beyond our salary is the equity in our home. Some investment vehicles like stocks have typicl returns of around 10%, but as we’ve all seen real estate investments can double in an incrediblyly short time. Unfortunately, as weve just experienced, it can also go down rather quickly.
Consider remodelling your home for only 2 reasons:
- You want better conditions or features where you currently are.
- You want to treat your home as the investment it truly is and maximize it’s potential.
Reason # 1 should be fairly obvious. You know what you want and why you want it. You want a new office and work from home more. You get a new position with a company in some other region and you cna telecommute but need an office. Whatever the reason, youve got a good idea of what you want.
Reason # 2 is not so obvious. Many people dont even consider it when they remodel or before they sell their home. The goal here is to create value in your home by developing it to its Highest and Best Use.
Simply put, remodel your home so as to optimize your homes potential within the neighborhood in which you live, thereby maximizing the price you can realize on your home. Stating it even more simply, if an improvement that costs a dollar means you can sell your home for two dollars more, you do it. If not, you dont.
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. There are homes in your neighborhood over 3,000 sq ft. 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 the average cost per square foot in your area is $180 and you pay $120/ft for the additional 1,000 sq ft, you’ve realized a profit of $60,000. Not bad! Don’t forget, modernizing will enable you to command a higher per sq ft price than what is normal for real estate sales in that area.
In either case you create value in your home by building it to its Maximum Potential.
Visit FinishingTouchRenovations for more ideas about Indianapolis Remodeling and any of your other remodeling needs.
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