Article - Most home renovations don't pay off

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For your Sunday reading...
http://finance.yahoo.com/real-estate/article/111220/home-upgrades-more-cost-than-value?mod=realestate-homeimprove
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http://finance.yahoo.com/real-estate/article/111220/home-upgrades-more-cost-than-value?mod=realestate-homeimprove That may be true, but who cares? I do renovations for my use and pleasure with no regard to recouping the money at sale time. Of course, I plan to live here until I die. If it works out that way, I'll never know for sure.
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I'm betting the legion of people watching all the HGTV shows about renovations and the alleged increase in value they provide are disappointed. You do raise an interesting question. I'll bet there are a lot more people planning to die in their current home then there* used to be. Show of hands?
-- Bobby G.
*Second worst bunch of words in the English language: "They're saying their chair isn't there." They're just as bad as the twos! Why have three "there/they're/their's", three "to/two/toos" and two "its/its" that you can't tell from one another without having to think about it?
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-snip-

That's my plan. Probably while completing one of the 20 or so projects I juggle. The kids are welcome to sell it, live in it, or burn it to the ground. I've gotten my money's worth.
Jim
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wrote:

I've found the more people adapt their houses to their own personal tastes, the more reluctant they seem to leave it (looks in the mirror). I don't plan to die here, but life may have other plans. I have stayed longer than I wanted to because of so many things I've added and the wretched economy.
-- Bobby G.
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On 11/14/2010 4:39 PM Robert Green spake thus:

Which is why a recent job I did for some folks is all the more perplexing.
Helped a couple get their house ready for sale while they looked for a new place; they're moving from their detached (semi-) urban house to a condo in a "golf community". The guy's an engineer (concrete), built and remodeled half the house which is quite, well, strange. At least very idiosyncratic; very impractical, but with a lot of really nice touches. Kinda looks like a house built by hippies on the outside, but nice on the inside. Lotsa wood (including a *lot* of really nice redwood).
Anyhow, the guy's getting on in years and less inclined to do projects, and practically allergic to all maintenance chores. Which is why I was called upon to do about 20 years worth of deferred maintenance. With the result that their home is now, finally, much closer to the way they've always wanted it; I put up trim that they'd been intending to do for *years*. And they're moving out of it in a month. To a place with much less "character" (and subject to the rules of the HOA). Go figure.
--
The fashion in killing has an insouciant, flirty style this spring,
with the flaunting of well-defined muscle, wrapped in flags.
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On Sun, 14 Nov 2010 18:12:04 -0500, "Robert Green"

SWMBO watches those shows all the time. I've not seen *one* where the alleged increase (I like that phrase) came in at 100% or more. Most do come from "I don't care what it's worth now - we did it for us" attitude.

Not me. We'll likely move at least once, again, and perhaps twice, in the next five or ten years. We moved here two years ago and I don't see retiring here. Maybe not far, but not here.
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And I'd say that most people, now that flipping houses is passe, will not do a major renovation unless they intend to live a long time in the house. As they said, maybe a cheapo curb appeal project. Anything that bumps up the price today is bad in the real estate comparables. Houses of the same square footage can be had in the same neighborhood for less, and then the DIYer can do their own remodeling and save the labor costs if they DIY.
Steve
Heart surgery pending? Read up and prepare. Learn how to care for a friend. http://cabgbypasssurgery.com
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On Sun, 14 Nov 2010 18:12:04 -0500, "Robert Green"

Oddly enough, that's what I thought until yesterday. Mostly because of my wife's feelings. Then we got our RE tax bill. 38% increase. Cook county, Illinois. Things change. Even my wife's feelings. She is pissed. Me too, but I see a silver lining. And Florida skies.
--Vic
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outcomes from a random number generator than anything else. The biggest being that they capped increases for those livingin their homes. However, when that house is sold, the property taxes are "caught up", so last years property tax for the owner could very well be 10% or even 50% or more less than what you would spend. And this is just the idiocy that is easiest to explain.
--
"Even I realized that money was to politicians what the ecalyptus tree is to
koala bears: food, water, shelter and something to crap on."
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a realtor near kissimee told me some years ago.
homes were taxed at 1% of retail value, primary residences get a 25% discount.
So a $100,000 homes tax was $1000, less $250 for primary residence.
$750 bucks, around pittsburgh its about 3 grand:( plus florida has no state income tax....
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On Mon, 15 Nov 2010 01:10:42 -0600, Vic Smith

I moved from The People's Republic of Vermont and bought a house in Eastern Alabama. My taxes went from $6,000 to $1,700. My most recent bill was $1,500, definitely in the right direction. There was no way I was going to retire in Vermont if I had to pay $500/month just to own my house. I might as well rent. Oh, and the weather in Vermont sucks just as badly as the politics.
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Would that be on a house of the same value both places?
Or did you manage to buy a comparable house for less money?
Most places tax on the actual value and I have heard the NE is one of the highest. Here it is about 10.50 per 1000 of valuation and I consider that onerous. Old-timers get to whack 20K off the assessed value. Whoopee!
Colbyt
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wrote:

Almost identical (within a half percent).

Same money, far more house. It's about 50% larger (2600ft^2 vs. 1700ft^2), an additional bathroom, and far more features. No basement. :-(

Indeed. It's about .5% here. That includes a 50% "homestead deduction" for owner-occupied housing. A second home would then be double, but that's still only half of $6K.
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He is comparing apples to apples for the most part.
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With one house in VT, for about the last 8 years I owned it the taxes were more than the mortgage. Saw one of those "Yahoo top 10" list on worse taxed states. VT was one of the top 3. Not sure which.

Still true.

Still true.
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Oh, forgot. You outta get a chuckle outta this.
I have an indoor/outdoor weather station. Radio controlled to an indoor display. Updates like every 30 seconds. Also monitors some satellite for the date/time every few minutes. Often they don't connect during the day but pick up the signal evenings/early am. Normal.
Clocked changed the 11/1 at 2am. I turned off the DST setting. It did not resynch until 11/5.
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My work system didn't reset until yesterday (well, sometime over the weekend). It was an hour off all last week and refused to be told differently.
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income properties is a great show.....
I made $$ on renovating my moms old home, sold before the economic collapse.
Value went from 80 grand to 115 grand, cost of renovations half that:)
at the time realtors all reported 90% of buyers want a home in move in condition, they will change the colors later.....
this means a home in run down shape automatically losses 90% of all buyers........
which is why home flippers exist.
ME, I would prefer a fixer upper since I enjoy home repairs
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On Sun, 14 Nov 2010 17:01:55 -0500, "Ed Pawlowski"

Amen. I've been here 25years or so & haven't stopped making it the way *we* like it. I have never given a thought to resale value.
Jim
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