DIY Home Improvement, Remodeling & Repair Forum > DIY Home Improvement > General Home Improvement Discussion > Calculating Cost vs Benefit Ratio on Renovations




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Old 06-14-2011, 09:07 AM  
mimsathome
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Thank you to everyone for the thoughts and ideas.

CyFree, I too found those statistics on the Remodeling site. I found them very useful and was glad to see. They had statistics based right down to the county I live in in Massachusetts, so it's worth considering. Of course, the value of everything related to real estate is going down, but it is good to look at the data anyway. The lowest return on investment was about 50% over all the categories listed. So I think the data is worth taking a look at, if only to educate myself.

I am moving forward with the renovations. I have a fantastic contractor/engineer who I trust and who has been very patient with my little peccadilloes while putting our plan together.

Thank you all for your ideas. I appreciate them - all good considerations.



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Old 07-11-2011, 11:17 AM  
theoldhouseguy
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One big way to save money and save the appearance of your house (if it's an old house) is to ignore those ads for replacement windows. You're just wasting your money and contributing to a big money making fad. The details are at Historic Wood Windows and Storm Windows vs Replacement Windows. How they affect curb appeal & the environment. Always remember - let the buyer beware!

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Old 07-12-2011, 04:11 PM  
tractng
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Quote:
Originally Posted by mimsathome View Post
Hello all,

I am about to embark on a fairly extensive renovation project on my home. Here's my question. How do I calculate the benefits of doing the renovations vs resale value of my house? What does that ratio tell me (I'm lousy in math)? Let me leave behind a few facts:
  • Home purchased for cash 125,000 in 2009
  • 1300 square foot house, one acre of land
  • Current tax assessment 160,000
  • Budget for renovations 35,000, paid in cash no loan
  • Will be living in the house for at least 15 years
I'd be interested in anyone's thoughts on how I can be sure these renovations will be paid back when I think about selling this house down the road. If the ratio comes back as a number 5:1 (as an example) what does that mean?

TIA
Mims in Massachusetts


I think you should look at the benefits of enjoyment rather ROI. It is priceless. I have a sister that sells her house every so many years just to cash in. The downfall is her son moves from one school to another and doesn't do too well in school.
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