Home Remodel Primer – Part Two

By administrator On March 24th, 2009

The first thing is to get the figures right. Prepare a budget. You also need to ensure that the money is being poured into a smart financial investment that will reap dividends. Factors to consider include the costs, any tax benefits that you can avail, funds with you, liquidity, etc.

A home improvement project that will give you a positive ROI has to more than just a paint job, changing the rugs, and adding window trims. You need to see where the returns are coming from. Do some market analysis, if it’s kitchen remodeling that you’re considering then see if it’s adding countertops or kitchen cabinets or new flooring that will get you good returns. The ROI that you get out of your remodeling expenses will depend upon your area, value of nearby real estate, and your choice of remodel. Also the timing of revaluation will make a big difference; the rule of thumb is that a home remodel works only if the economy is looking up and the real estate market is booming.

There’s no way you can predict which way the market will swing but you can study certain market indicators that will tell you if this is the right time to put valuable finances into home remodeling. If a residential neighborhood is going to have an industrial set up in the near future, it will impact home prices. Road constructions and zoning changes will impact traffic conditions. Your housing society or neighborhood should be properly secured; open areas invite development. The neighborhood should be close to the market and schools. The schools should be quality institutions. Other means of transportation should be available. A simple walk through the neighborhood should tell you if the mood is upbeat. If you see homes put up for sale, it means that the area is a viable place to deal in property.

Find out the kind of taxation that the area has to live with, what are the municipal amenities available, something like wireless internet hubs could be a big draw for certain individuals.
Loud noise, heavy traffic, pollution, and high crime stats are negatives you should consider in checking if your locality is good enough for you to embark on a home remodel.

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