In the November issue of Money magazine, they list 25 rules to grow rich by and I want to highlight and comment on several of them over the next couple of weeks. Today's tip is related to making the best investment when renovating your home:
For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
The return on investment on a mid-range bath modernization is 102% of its cost. Kitchens can add about 90% of their costs to the home's value.
This is pretty much home improvement return 101 -- bathrooms and kitchens are good investments, all others probably won't pay for themselves. That said, if you're going to be living in a place for several years, go ahead and fix it like you want it. Even if it only returns 50% when you sell the house, you'll still have several years of enjoyment out of the change.
For more real estate related posts, see these links:
I like the concept that "living in a place helps mitigate the renovation cost." Are there any rules-of-thumb for calculating this?
Posted by: Wplus | January 11, 2008 at 04:20 PM