Moneywatch: The Best And Worst Investments For Your Home
MIAMI (CBS4) – With spring time here, people may be thinking about doing some renovations to their homes.
But when it comes to remodeling, there are certain places in people’s home that will give a better return on investment.
David Shannon prides himself on his tile work and is excited about his latest project, finishing a remodeled bathroom.
“I am doing more bathrooms than I am anything else right now,” David Shannon told CBS4’s Jorge Estevez.
Shannon finds a solid remodeling project is one answer to a rocky housing market.
“It is better to put money into the old one that to buy a new one,” said Shannon.
Experts agree. Home improvements are on the rise, according to Angieslist.com, a consumer ratings service.
A survey found that 90 % homeowners are doing remodeling projects and 80% of contractors are willing to negotiate prices.
“You don’t want to over invest. You don’t want the most expensive house on the block,” said Angie Hick’s, founder of Angieslist.com
People need to choose the projects with the highest return like:
1. Kitchen: 85% return on investment
2. Bath: 84% return on investment
3. Decks: 80% return on investment
4. Siding: 80% return on investment
5. Windows: 80% return on investment
Angieslist.com wants to warn people of remodeling projects with the least return on your investment like:
1. Pool: 50%
2. Home Office Remodel: 57%
3. Sun Room Addition: < 60%
4. Master Suite: < 60%
5. The Garage: < 60%
It about making smart choices when redoing any part of a home.
“Know how long you are going to live in the house because that will determine the return,” said Hicks.
Homeowners should also remember it is about sticking to their budget.
“Just don’t go overboard cause you may not get back your money back later,” said Shannon.