When it comes to home renovation, there are many factors to consider when determining your potential return on investment. The most obvious to consider are:
- The type of project you’re planning.
- The location of the property.
- Your project timing.
- The current real estate market.
Contrary to popular belief, most home renovation projects will not get you a 100% ROI. TV shows often give the false impression that home renovations are a quick way to make big bucks, TV is not the reality.
We tell our clients that they can expect roughly a 70% return on most renovation projects.
Most financial planners agree that most home renovations are a bad way to try and make a profit. There are much better ways to make a positive return on your investment.
Why is ROI such an important factor when it comes to remodeling?
ROI stands for return on investment. It’s always important to ask yourself “Is the juice worth the squeeze” before jumping into any investment. Some changes to update a home will bring a much higher return than others. It’s important to know what your goals are before starting a reno project, and have a plan. Putting money into a project without a plan is simply gambling, but in this case…the house doesn’t always win.
We have managed many home renovations and learned something from them all. Check out all of our home renovation blogs if you are interested in reading some tips and tricks. We’re also happy to meet with you and offer our professional opinion.