No bang for your buck: Home improvement projects to avoid
Posted on Friday, December 14, 2012 at 4:52:23 PM
Home improvement financing gives consumers an opportunity to make needed updates and repairs to the properties. Other homeowners use this option to add values to their homes. However, over the years some popular home improvement projects have gone out of style.
Consumer spending on home improvement projects is expected to reach $121 billion during the fourth quarter, the Harvard Leading Indicator of Remodeling Activity reports. However, according to The Street, there are a number of property updates and renovations that may no longer be worth the investment.
The thought of owning a home with a master suite is very appealing to some people. However, the investment may not be worth it.
The average cost to construct a master suite is $106,000. Some people believe they will make this back if they choose to sell their home one day. However, this project will only add an estimated $63,000 to their property value. This means in the best case scenario, they will make just less than 60 percent back from their investment.
Although a swimming pool can provide endless hour of entertainment for family and friends, the costs may outweigh the benefits. The cost to build an in-ground pool ranges between $25,000 and $50,000. In addition, homeowners will need to spend roughly $2,000 per year for maintenance and upkeep.
Unfortunately, there aren't the only costs involved with owning a swimming pool. In addition, a homeowner will likely experience a notable increase in their cost of home insurance, as a pool can significantly increase the chance of personal injury on a property.
Prior to the housing market collapse, outdoor amenities such as kitchens, were in high demand. However, now that many homeowners are more interested in more conventional updates, outdoor kitchen are no longer in high demand.
Additionally, a homeowners ability to utilize their outdoor kitchen is susceptible to the elements. Those who live in colder climates may only be able to take advantage of their outdoor kitchen a few months out of the year.
According to the website, the bare minimum most people spend on a sunroom addition is $74,000. Although this can give a household the feel of being outdoor while shielded from the elements, it won't protect them from the weak investment potential.
A sunroom add close to $30,000 to a home's value. Although this may seem appealing to some people, this will be about roughly half of what they pay to complete the project.