Housing Investments That Have The Worst Returns

Housing Investments that have the worst Returns

 

All over the internet there are articles about home renovations that will offer you the best return, But rarely are there articles that point out what renovations will just become a black hole for your money. When you first bought your home there were probably a few things you wanted to fix up as soon as possible. Of course you want to make your house your own as much as you can, but if you plan on selling in the future you probably shouldn't take the personalization too far. keep in mind that most buyers will accept some level of personalization as long as it's not on a crazy level. However, make sure that you also remember that even the most thoughtful and beautiful renovations are going to cost more that they will ever be worth. Remodeling Magazine has been tracking the average costs of the 21 most popular projects since 2002 and the value the returned. Based on national average, here are a few that turned out to be the worst investments.

 

Mid-Range Bathroom Remodel Estimated Return: 57%-64%

Although it is an amazing experience to own a home with a beautiful bathroom with the large glass showers or the big bathtubs, you can't take that stuff with you when you move. This investment will only return you about half of the money that you put in, leaving you with less in the long run. A mid-range bathroom remodel will return you more of your initial investment than an upscale remodel. So if you are thinking of remodeling your bathroom and want the best return you can get, stick with the mid-range remodel to save both time and money.

 

Upscale Master Suite Addition. Cost: $256,229. Return: $123,797 (48.3%)

Upgrading to a new master suite is a costly home renovation, but the return will leave you losing almost 50% of your money in the long run. one of those things that you may find you use extensively, but shelling out hundreds of thousands of dollars for one may be a sign you’re not ready to give up on your existing home after all.

 

Midrange Backyard Patio. Cost: $54,130. Return: $25,769 (47.6%)

Generally speaking, outdoor-facing projects tend to return better because they increase the overall curb appeal of a home. And even though midrange wooden deck additions return 82.8% and midrange composite deck additions return 63.6%, the backyard patio is the single worst return on your home renovation dollars in 2018. This may be due, in part, to the fact that it adds nothing to curb appeal and is almost assumed to be the norm in most markets.

 

When It Comes to Home Renovation Projects, Think Small

The key to better returns on home renovation is to think small. Replace that ugly light fixture in your foyer, swap the vinyl flooring in your entry for tile. A home that is neat, clean and well-lit will always sell better than one that has something a bit quirky about it, no matter how much it cost to install.