Doubling the Value You Get From Your Remodeling Investment, Even in an Unpredictable Market

By Terry Streich

Many people don't realize the dual nature of the return they get from their remodeling investment. When you remodel your home, there are generally both long-term returns, such an increase in the resale value and marketability of you home, and immediate "daily dividends" which you start receiving as soon as the project is completed.

The return that most people think of, and that you read about most in the press, is the increase in the resale or market value of your home. This return is the long-term portion of the return on your investment. It can be high or low depending on the housing market and economy when you sell. However, almost no one decides they want to remodel because of the likely increase in the resale value of their home. It is not their primary reason. It is a bonus.

Most people remodel their homes because of the valuable daily dividends they will receive. The dividends they get from remodeling are very tangible and come from the way that remodeling your home improves the quality of your life. How it lets you do things you couldn't before, provides you with the special places you have always wanted: a new kitchen, addition, master suite, or other specialty room. How it makes you feel when you wake up in the morning or when you have friends and family over.
The value of these wonderful daily dividends are NOT dependant on the housing market, financial markets or the economy. However, they are very dependant on timing. The sooner you remodel, the longer you will get to enjoy the daily dividends, the real reason you want to remodel.

So, if you expect to live in your home for another 15 years, remodeling now will give you 15 years of living in a home designed for you. You will get double the daily dividend value you would get compared to if you waited seven to eight years before remodeling. And remember, these daily dividends are the reason you are really remodeling in the first place – to make your home a nicer place for you and your family to live.

As recent events and history have demonstrated, the housing and financial markets are subject to ups and downs and are, in some respects, unpredictable. Almost any kind of investment is more risky than they have been in a long time. However, the daily dividends you get from remodeling your home are tangible, positive, dependable and predictable. You will increase the value you get from these daily dividends by remodeling sooner rather than later.

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