Remodeling House

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  Remodeling House
Remodeling your house can be very expensive. Before you invest your hard earned money on remodeling your house, you would like to know what the returns on this investment would be. One would like to know whether the resale value of the house would increase once remodeling is done. You would like to know whether it is better to build a new house or to remodel the existing one. Returns on remodeling investment depend on a number of factors. These factors are briefly discussed below.
  • The type of remodeling you are planning to do is important. If you plan to repaint your house then the investment will not be large. But if your plan to make an extension in the existing structure, then it will involve a big investment. Depending on the geographical location of the house such an investment will be positive or negative.
  • Returns will depend on the market value for houses in your locality. If the prices of house are increasing in your locality, then you will get a good return. But it prices are decreasing then remodeling will not add value to your house.
  • Returns will depend on how your house will appear after the remodeling is done. If it doesn't fit in with the way the other houses look in the neighborhood then the value of the house will not increase.
  • Returns will depend on number factors in the neighborhood as well. If a highway is being constructed in the neighborhood the value of the house is likely to decrease in future.
  • Returns will depend on the time taken to commute to one's work place. If your neighborhood has easy access to work places and highways then the value of your house is likely to increase.

  • If local transport facilities are good then the returns on remodeling may be high.
  • Returns on remodeling investment will depend on the quality of elementary schools and the over all quality of public education system. If the quality of education is good then the returns will be high.
  • Returns will depend on easy access to shops, grocery stores, restaurants and shopping centers in the neighborhood. If your house has easy access to most of the above then the value of your house is likely to increase with remodeling.
  • If the taxes are high in your municipality then the value of houses will decrease.
  • If the crime rate is high in your neighborhood then the returns on remodeling will be less. As your locality will be less attractive to new tenants.
When one is investing a lot of money in remodeling, he does so hoping that the resale value of the house will increase. Depending on the above factors decide whether investing in remodeling your will be a positive or negative investment. By remodeling your house if you intend to increase its resale value, then use the above factors as a checklist and then decide whether remodeling your house will be worth it or not.

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