Are Home Renovations A Good Investment?
Most home renovations begin with the idea of improving your quality of stay. However, if you do have plans to sell your home for a profit, renovations may actually net you a profit depending on your home. With any renovation, the cost of the upgrade is probably most important. But the cost itself isn’t enough of a concern on its own and without some context. It’s important to determine whether a certain upgrade is justified in terms of return on investment and comfort it’s going to deliver. If you don’t know how to decide whether a renovation is worth the money spent, here’s how to find out.
Always Consider the Potential ROI
In other words, how fast will a home renovation pay itself off and start delivering financial benefits? Here’s an example to help you understand the calculation better.
Let’s say you decide to spend on low-flow sink to save/reduce water usage. The return on investment that stems from the increased consumption efficiency and reduction in the water bill you’re going to get. A low-flow sink, for example, can reduce the flow of water by about 30 per cent. A low flow toilet saves even more water. Conservative estimates show it pays itself off in about seven years, after which you will be enjoying the money saved.
The same logic can be applied to any other home upgrade – new windows and doors, insulation, kitchen appliances, HVAC systems, etc. If you’re going to enjoy some savings and cost reductions in the year to come, a home upgrade is definitely worth the money spent.
Weighing Quality of Life Upgrades
The way in which a home renovation improves your life quality is a bit less tangible than the ROI you can actually measure. Yet, this is the second important thing you’ll have to consider before spending your money on anything.
For example, imagine you’re renovating a guest bedroom and you install spectacular marble floors there. Marble is definitely a beautiful, exquisite material. The fact that it’s installed in the guest bedroom, however, should make you wonder about the need for such an investment. If you don’t use that space too much yourself, chances are that you’re not going to experience noticeable improvements in your quality of life.
Thus, the biggest spending should be concentrated on the home areas that you use the most. Think about problems and missed opportunities you’re currently dealing with. Having an upgrade tackling those issues in the most comprehensive way will make both practical and financial sense.
Keep Long Term in Mind
Near-sightedness is a very big problem when it comes to realistically assessing the value of a renovation. The final thing you have to do to decide if an investment is justified is to consider the long-term perspective. Perhaps you’re spending a lot of money on a thorough upgrade now. But if that upgrade is going to save you money on maintenance and repairs in the years to come, it’s definitely worth taking on.
Also, think about how long you plan to live in the respective home. Are you planning to start a family soon, a life choice that will necessitate a move to a bigger space in a couple of years? If that’s the case, investing in expensive home upgrades right now to enjoy in the future doesn’t really make sense. You’ll be much better off saving some money and investing that amount in the acquisition and the renovation of a new family home.
The worth of a home upgrade isn’t 100 per cent objective – you have to think about the actual ROI and the way in which your lifestyle is going to be impacted. Generally, remodelling projects worth taking on are the ones bound to fix design, structural or functional flaws. They’re also the ones that can result in more comfortable and affordable living in the years to come.
As a person who isn’t a professional, you may lack the experience and the perspective to assess aspects of a renovation and the ways in which these are going to leave a print on the property (for good or for bad) in the future. Feel free to speak to our designers for inputs or assistance below!
At Dreamakers Interior we believe that every space has the potential to become unique, harmonial and beautiful. We are proud of what we do and are prepared to work overtime to guarantee that you are satisfied with the way your space looks. From full-scale projects to small renovations, we invite you to take a look at our gallery and see what we have done. Below are some of our favorite projects. If you need professional help for design conceptualization or space planning, let us know.
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