Home improvement projects worth the investment
Posted on Tuesday, November 6, 2012 at 5:05:28 PM
When it comes to remodeling a home, there are some projects that make more sense than others. While a new swimming pool or outdoor fire pit could be fun to have, these types of projects don't often give homeowners a recoup on their investments if they ever sell their homes.
According to Hanley Wood, the average recoup on home improvement projects declined so far this year on an annual basis, but certain ones still experienced improvement.
Add an attic bedroom
In today's housing market, homeowners look for extra space wherever they can find it. In the past, as families grew and matured, many households would uproot and move into larger properties. Unfortunately, this is not longer an option for some.
To expand their homes for more people, many homeowners opt to build attic bedrooms. According to Hanley Wood, the average cost to build an attic bedroom this year is $50,148 and you can expect to recoup 72.5 percent of your investment. Residential refinancing could be a viable options to free up the extra cash to put toward such a project.
Replace that old garage door
Purchasing an automobile is expensive and most owners want to protect their investment with a sturdy garage.
Often the weakest part of any garage is the door, but this part is relatively inexpensive to replace. According to Hanley Wood, the average garage door replacement costs roughly $3,000, and you can expect a 71 percent recoup on your investment. But this project offers other perks as well.
For example, an old garage door can significantly reduce a home's curb appeal, and make it difficult to attract prospective buyers one day. Replacing it with a new door could be a smart business decision.
Take a look at your siding
The siding of a home is very important to both its appearance and structural integrity. If your current siding is cracked, molding or falling apart, this project might be a good idea.
You can expect to recoup up to 78 percent on your investment if you replace your siding with fiber cement, which costs roughly 13,000 to install, says Hanley Wood. Meanwhile, if you want foam-backed siding, be prepared to spend upwards of $14,000, but you may get a smaller return on the investment.
According to the National Association of the Remodeling Industry, home improvement projects increased 2.5 percent in September from three months earlier. Homeowners may want to capitalize on this mortgage rates near all-time lows to refinance their home loans to free up some extra cash to put toward a remodeling project.