“Will this add value?”. This is the question that gets asked immediately after the thought of a renovation enters your mind. It’s also what most of your friends will tell you when you mention a renovation. It’s very interesting that people look at renovations primarily from this view as opposed to the more important questions “will I get my money’s worth out of this renovation?”
Almost every one of your expenses losses its value, (unless you are a fine art collector). What if you were to look at your $8 a day Starbucks habit that way? Well, that’s over $2900 a year in a cup of coffee that you can make at home. When you are considering a renovation or upgrades you want to have a blend of recovering the cost AND more than anything, enjoyment of the renovation.
Let’s take my kitchen renovation. I love cooking. I am in the kitchen probably 60% of my waking hours, I am in there right now while I am writing this post…It is a place of serenity and calm for me. I wanted to make sure that this was a kitchen that I could walk into every day and feel happy and motivated.
I’m not saying budget was not a concern, but you have to look at the lifespan of use. Let’s leave out the full renovation and focus just on the appliances. We got a four burner Wolfe Stove which cost me about $4000.00. It is definitely an expensive purchase, but why would I look at it like never getting my money back?
An average stove will cost me $1500-$2000, so let’s say I spent $2500 above what was needed. The lifespan of a good stove is 20 years, so I am spending $125 more per year OR $10.41 more per month. Guess what, I cook twice a day AND I can guarantee you that this stove prevented me from eating more take-out and sitting at fancy restaurants. The truth is, it is saving me money.
You should only be worried about getting the money back from a renovation if you are selling within the next two years, otherwise you should be looking at your renovation as an investment in yourself. How much better would you feel walking into that nice new master bathroom? Would you feel motivated to be more productive? Would you wake up happier? What is that worth to you…. for my stove, it works out to .17 cents a day.
So, enjoy yourself and keep in mind that your renovations do add value. Many times they can add more than the cost of the renovation in areas where home prices have gone up. If you are still on the fence you can contact us for a quick idea of what renovations will add the most value and what homes are worth in your area.