Remodeling For Profit Could Be A Waste Of Money
When prices are going up and real estate seems to be
going through the roof, remodeling might not be a waste of money.
However, today as house prices are starting to stabilize, remodeling for
a profit could be a waste of money.
I don't know how many surveys I've seen in the past that show returns on investments for bathroom remodeling. I see them every once in a while that suggest 80% returns on your original investment.
This doesn't mean that you will make an additional 80% off of your bathroom remodeling project, it means that you will get back 80% of the money that you invested into it. In other words, if your bathroom remodel cost $10,000, you should get at least $8,000 back on your original investment of $10,000.
I don't know about you, but this doesn't make any sense, if you're planning on selling your home. What about remodeling other areas of your house or even adding on additional square footage?
Try not to get caught up in surveys or suggestions from real estate advisers and friends, who might not have your best interest at hand. If you want to remodel your bathroom, because it's 25 years old or your fixtures are leaking, then by all means go for it.
If you're planning on remodeling your bathroom, kitchen or other areas of your home, because you think that you can make a profit off of these investments, you might want to think twice. Check out the average home selling prices in your area and take a closer look at the condition of the homes that are being sold, before moving ahead.
Start with a little research on your own, before taking someone else's advice, because it could save you a small fortune in the future.