Is Remodeling an Investment or Expense?
Pool Photo
Opinions vary, but facts can be much more useful. Remodeling Magazine has recently published their annual survey on the return on investment for different remodeling projects. They cover adding pools, updating kitchens and bathrooms, additions and so on.
The verdict is a bit deflating. In the Southeast US, none of the covered updates or additions will return your money when you sell. Simply, if you’re remodeling or adding for any reason other than your personal use, you are losing money.
Now, I believe Remodeling is using contractor prices. If you are doing the labor portion yourself, you will likely come out ahead on many updates. I also believe renovating homes (link) purchased at a deep discount because of condition can be profitable.
To learn more check out the Remodeling Magazine article (link).
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