According to Remodeling's 2016 Cost vs. Value Report, you'll recoup an average of 64% of what you paid for a renovation if you sell your home this year.
Source: 10 Home Renovations That Offer the Best (and Worst) Return on Investment - Real Estate News and Advice - realtor.com
Return on Investment
We've previously discussed Return on Investment (ROI) about how much more (or less) than an asset's cost it is (or will be) worth at resale. It went a little something like this.
OK. The same concept of ROI applies, perhaps but not always on a lesser scale, to the effect of improvements made after purchase to the resale value of that asset.
Many (not all) buyers want gorgeous granite, jacuzzi tubs, bedroom fireplaces and similar creature comforts. And where these add great value...prestige, will they amount to a dollar for dollar increase in financial value? It depends.
It's never good to have the most expensive house in the neighborhood. First, they can stand out like the a Taj Mahal near Quonset huts. Gaudy is definitely not good, IMHO. Worst, pride in ownership can be a bitter pill to swallow when no one cares how much that Italian marble tub cost. When it comes to comparable values, a tub's just a rub-a-dub-dub. Sorry, couldn't resist.
Quickly. What is relatively worth more, adding attic insulation or a bathroom that will relieve congestion come school time? Before we tell it, understand you'll recoup about 67% of improvements on average. Drum roll, please...
Attic insulation, by a long shot of 2:1. Sad but true.
Rehab Loans - Pennies from Heaven
So be careful what you ask for, you might not get it. Unless it's help to pay for remodeling projects on that would be perfect home were it not for the host of improvements needed to make it your castle, whether necessary or not.
With Fannie Mae's and Freddie Mac's HomeStyle Renovation and FHA's 203k loans, it is relatively easy to turn that ugly house into the nosy neighbor's bane of existence.
Energy Efficiency Assistance
How about we add energy efficiency upgrades to our efforts and receive up to $8,000 in help to do so?! This is HOT! No pun intended. Learn more here.
Thanks for reading. Let us know how we can help?
Yes, they're still out there. Underwater homes like this one, worth less than what's owed. And as presumably once advised, many once lured by attractive, extremely low introductory rates may soon meet the adjustable rate part of their mortgage when financial markets do what they do, adjust.
It happens all the time.
Don't get me wrong, adjustable rate mortgages are a fantastic tool, but only when used wisely. I learned this the hard way in the early 2000's, after getting a friend into an Option ARM with a 2% teaser rate that would soon adjust so far above that it made the mortgage unaffordable. She ended up having to refinance with another lender, again paying the closing costs, commissions and other fees that come with. Of course, disclosures were made, but it is easy to glass over details when we can get what we want at a payment (notice I didn't say price) we can afford, a "let the cards fall where they may" approach. Needless to say, things were a bit tense after that and, besides the one about doing business with friends and family, there's another cautionary tale within, which is to thoroughly understand contracts entered into. Too many similarly face sudden increases in monthly housing costs they can't afford, becoming the next to face the all too familiar foreclosure crisis as a result.
But like every commodity, real estate values (or lack thereof) are cyclical. One truth of it is that real estate is a stable, profitable investment by any measure; another is that people buy and sell real estate through all cycles. And, when you've worked with everyone from the novice to the savvy investor and from the distressed to the homeowner recovering from said distress since 1997, you realize there are keys to meet every goal and overcome any problem. The question is...
...which, if any, is yours?
- Real estate locating, analysis, acquisition, sales and management
- Foreclosure help
- Commercial lending
- Private and hard money
- Credit services
- Business credit
- And more
Be it from the start of a dream to invest in real estate to the recovery from a nightmare certainly, there's an aisle in this market for most.
Now, you might be thinking, "That sure is one good-looking mascot, how does he do it all?" or "How do I keep the ball rolling?" Thought you'd never ask! Submit the consultation request to your right to get all the details you need to keep that ball rolling and then some. And so will clicking there. That'll get it rolling too...
Section 1031 of the IRS code lets you buy and sell "like-kind" property without having to pay taxes at the time of the sale, maybe never, so long as certain rules are met. This is because the new property is seen as a continuation of the original.
Long mistaken as a tool for corporations or professional investors, the 1031 Exchange is actually a strategy that can be implemented by most anyone with the help of an approved accomodator.
The steps to an exchange are as follows:
RealEstateSuperMarkets.com has partnered with a qualified accomodator of 1031 Exchange services. Please contact us at [email protected] or use the contact form to the right for a no-cost, no-obligation consultation.
A licensed real estate and mortgage professional for many years, I can't over emphasize the importance of CYA'g your real estate investment activities.
For a limited time, you can get these crucial forms for less than $40.00!
Using real estate forms not approved by regulatory agencies may violate law, especially if you are a licensed real estate professional. Please be sure to check with any such agencies before purchasing and/or utilizing such forms. Using these forms does not substitute legal advice. Please be sure to discuss such matters with qualified legal counsel.
Don't do another deal without them! This is a time limited deal. Get yours today!