Return on house rennovation
So I searched the return on renovation and I've found this stat on a website:
"
Thinking of renovations? Here is a list of the top 10 renovations and their average return on investment as determined by the Appraisal Institute of Canada.
Top 10 renovations
Average return
on investment
Painting and interior decorating 73%
Kitchen renovations 72%
Bathroom renovations 68%
Exterior painting 65%
Flooring upgrades 62%
Window/door replacement57%
Family room addition 51%
Fireplace addition 50%
Basement renovation 49%
Furnace/heating updating 48%
"[1]
What do these numbers mean? For example, 1. Painting and interior decorating 73%. Does it mean if I spend $100 on Painting and interior decorating, it'll increase the resale value by $173?
And look at this from another site:
"2. Bathroom (Remodeling)
How does a couples' walk-in shower, new skylights, Jacuzzi tub or vaulted ceilings sound, for starters? According to Harvard's Joint Center for Housing Studies, a mid-range bath remodeling (which costs an average of $10,499), will add $10,727 to your home's value. The ROI based on these numbers? 102.2 percent.
" ... If money's tight, just replacing the water fixtures helps," says Johnson.
ROI: 90.1 percent for a mid-range remodel, according to the Remodeling magazine survey. " [2]
For this specific example, so if we spent 10,499 and it'll add 10,727 to home's value, the ROI should be 2.17% NOT 102.2%.
Now, I am very suspicious about the claims about return on home renovation in general.
Reference:
[1]http://www.lendingmax.ca/artman/publish ... ations.php
[2]http://www.sixwise.com/newsletters/06/0 ... tments.htm
"
Thinking of renovations? Here is a list of the top 10 renovations and their average return on investment as determined by the Appraisal Institute of Canada.
Top 10 renovations
Average return
on investment
Painting and interior decorating 73%
Kitchen renovations 72%
Bathroom renovations 68%
Exterior painting 65%
Flooring upgrades 62%
Window/door replacement57%
Family room addition 51%
Fireplace addition 50%
Basement renovation 49%
Furnace/heating updating 48%
"[1]
What do these numbers mean? For example, 1. Painting and interior decorating 73%. Does it mean if I spend $100 on Painting and interior decorating, it'll increase the resale value by $173?
And look at this from another site:
"2. Bathroom (Remodeling)
How does a couples' walk-in shower, new skylights, Jacuzzi tub or vaulted ceilings sound, for starters? According to Harvard's Joint Center for Housing Studies, a mid-range bath remodeling (which costs an average of $10,499), will add $10,727 to your home's value. The ROI based on these numbers? 102.2 percent.
" ... If money's tight, just replacing the water fixtures helps," says Johnson.
ROI: 90.1 percent for a mid-range remodel, according to the Remodeling magazine survey. " [2]
For this specific example, so if we spent 10,499 and it'll add 10,727 to home's value, the ROI should be 2.17% NOT 102.2%.
Now, I am very suspicious about the claims about return on home renovation in general.
Reference:
[1]http://www.lendingmax.ca/artman/publish ... ations.php
[2]http://www.sixwise.com/newsletters/06/0 ... tments.htm