When doing renovations, people rarely think about long-term resale value. Most families just want to make their living home. However, life can be unpredictable. So while it is good to make a dream home, those dreams need to be well-funded in the long run.
What is resale value?
We hear the idea of resale value. The ideal is to buy a property that is a good investment and to have its value. Good maintenance and appropriate renovations help ensure that when it comes to sell again, the property has earned equity and you'll make money.
However, the amount of money you make depends on market appreciation. Which is why it's important to improve the property and the neighborhood.
Location the key factor to consider
If you've bought a property by a highway or another not-so-great location, you probably got it for a good price. If that's your value does not increase during the time you own it, you'll probably have to sell it for a similarly good price, even if you've done a lot of work on it.
Many property owners invest in renovations that are not in keeping with the neighborhood. As a result, they end up selling for less than they invested, which can be heartbreaking.
Before you renewate, look at what has been selling around you – at what cost for what quality? $ 400,000 after being completely renovated, it does not make sense to style your home to a higher value.
And really, how special are those $ 10-per-square-foot tiles anyway? Go with the $ 5 tiles instead.
Focus your investment on one or two elements per room. Make pricey items such as granite countertops, a fancy backsplash, or a higher end faucet; work like show pieces, similar to a piece of art.
Smallest may be best when it comes to resale
As for adding a second story to create space for an expanding family, it may be worth the hunt for a bigger home.
If you invest in an extra $ 100,000 on a two-bedroom bungalow in a neighborhood full of two-bedroom bungalows, you may never recover that full investment. A home in a neighborhood where your investment will hold and even grow in time.
When it comes to resale value, it's always better to have the smallest house in an area with mansions than a $ 600K house surrounded by $ 300K houses.
Of course, creating a joyful home should always be the first priority. Just make it cool. Do you want to bring prosperity and happiness for years to come?Immobilienmakler Heidelberg Makler Heidelberg
Source by Jennifer Lynn Walker