Getting A Return On Your Home Addition Investment
More and more homeowners are deciding that the best way to improve their lifestyles and their personal balance sheets is to invest in their single biggest asset: their home. Home remodeling and improvements are a great investment because they increase property values and they can help you enjoy life in your own home.
According to recent studies across many California real estate markets, kitchen and bathroom remodeling consistently offers the greatest return on your investment ranging from 80-100% ROI.
Deck additions, outdoor living rooms and patios in regions like Southern California and the Los Angeles area where outside activities can be enjoyed year round, usually give 100% return on your investment.
Great room additions offer 70% return when it comes time to sell your home. Master bedroom suites and family room additions also offer a fairly high return. Remodels that convert unused space into functional living space, such as attics, can vary widely from region to region. As do garages and car ports.
In addition to doing research in your California local real estate market, you should also look around your LA neighborhood. Consistency among neighborhood homes is crucial to the overall environment and home buyers will notice if your house does not fit in. Any improvement you make to your home should be consistent with other homes on your block. For example, if you invest in an elaborate addition when your house is next to several modest homes, it will stick out like a sore thumb. Making this investment will not provide the return you are hoping because the truth is that home buyers that can afford such a house will look for one in a more expensive neighborhood, such as Bel Air, Beverly Hills, Santa Monica or Brentwood.
It is important to keep the original design of your house in mind when you attempt to add an addition. One way to do this is by using the same materials or complementing ones, that way your home will remain tastefully appealing on the inside and out. It is never a good idea to go with bold, eccentric colors schemes if you are planning to resell your home. Remaining neutral and conservative gives the home buyer the creative freedom to integrate their own style without having to redo everything that has been done. Remaining neutral will benefit you dollar wise when it comes time to sell.
Build the remodel addition that makes you the happiest. If you want a deck built or extend your living room, do so and enjoy every inch of it. The truth is that your return on investment can vary greatly depending on the US economy and the California real estate market and other factors, so you can never really be totally sure what the future value will be. If you have no intentions of moving for a long time, then you should build the addition that suits you and your lifestyle, without having dollar signs and resale value factor into your decision making.