Home Improvements – Cost Versus Value

Home improvement projects are on the increase fuelled by a stagnant housing market which has seen people stay put in their existing homes instead of moving up the property ladder and by the huge tax incentives that have been put in place as the government seeks to get the economy moving.

Traditionally, for many homeowners and real estate professionals it has been a difficult task to establish what home improvements will actually increase the value of the property more then they cost to undertake. Indeed, some home improvement projects will actually detract from the value of your home and this is especially true of work carried out to a poor standard. To reap the benefits of any home improvement, both in terms of your enjoyment and the enhanced value of your home, it is imperative that a professional finish is achieved and this means engaging professionals to carry out the work and wherever possible, obtain guarantees for the workmanship.

Now more than ever, home improvement projects can be seen as generating a significant increase in the value of your home compared to the cost of completing the project. The reasoning is simple – house prices and home improvement project prices have significantly dropped as the recession has bitten deep into the pockets of the country. Demand has dropped significantly and suppliers of home improvement expertise, products and labor have had to respond by slashing prices.

Now the economy is returning to better times with the recession starting to fade. Prices will start to rise again as first time buyers return to the market and people look to trade their homes up. The pricing for labor and materials will also start to rise generally as people get put back to work and have more money to spend on their homes and lifestyles.

Right now, existing homeowners have a unique opportunity to get home improvement projects finished at rock-bottom prices and subsidized in many instances, by very large tax breaks courtesy of the government. This will be a relatively very low cost to the individual home owner compared to pricing in say a year’s time when tax breaks will no longer be available and prices have started to return to pre-recession levels.

Home improvement projects which are likely to add more value than they cost include window replacements, installing low-maintenance siding, recreational facilities such as a swimming pool or sunroom and decking. By carefully researching what your home would benefit the most from having done, you have an excellent window of opportunity to significantly increase the enjoyment you derive from your property while seeing the value increase way beyond the government-subsidized cost to you.

On the other hand, homeowners stand to benefit from the reversal of house price declines and start to experience general increases in their property valuations as the real estate market becomes more active and people start to buy and sell homes again.

By improving your existing home now, you are taking advantage of extremely low pricing while standing to benefit from the increase in property values as a result of the economic recovery and by improving your home.