One of the most frequently asked questions is "Will I get
a better value for money if I renovate my existing house than if
I had to buy or build another house?" The answer to this question
will depend on a number of different factors, such as:
1. Type and Cost of Renovation
The type of renovation you do will directly effect the answer
to the question above. Simply painting the inside of your house
and redoing the floors may not do this for you.
On the other hand, adding an addition room or by expanding the
physical structure of your home can impact your home value assessment
greatly. The down side to this is that this type remodeling projects
can be very expensive.
Other factors of getting a positive return on your home renovation
project will also depend on other factors aswell such as: your
neighborhood, value assessment of surrounding homes, the positive
growth of the community, and the personal tastes of the area.
2. Market Valuation
If home prices in your are are increasing, then a renovation
project may add a percentage value to your existing home value.
However, should the market values in your particular be decreasing,
then a renovation project may fail to add any new value to your
home, and only cost you money without any return
3. Home Comparison
The type of renovation that you plan may not fit with your surrounding
houses, in which case that particular home renovation may not
give you the positive return in home value you were hoping for.
4. Neighborhood Values
The value of the buildings in your neighborhood will also have
a direct effect on the value of your house. Lets take a look at
what could effect the value of your house:
- Quality Views: Views of factories and industrial
areas will have a negative effect on the value of your house.
- Zoning Changes: Zoneing changes can easily
and quickly turn a quiet neighborhood into a busy shopping center,
or any non-neighborhood construction verry easily. Adversly, shops
which are easily accessable from your neighborhood could also
have a positive effect on your house value.
- Large Open Spaces: in a neighborhood could
easliy lead to a potential development. The type of development
which may take place could positively or negatively effect the
value of your property
- Commuting time: between your neighborhood and
work areas will also have an effect on the value of your property.
The more time which is spent time commuting from home to places
of work will decrease the value of your home.
- Schools: in or close to your neighborhood will
also have a direct effect on the value of your house. However,
it is no real use to be 1 mile down the road from a rehabilitation
school either.
- Tax rates: High taxes and high municipal service
fees can decrease a neighborhood's value.
There are a number of other negative factors that could also effect the value of our house such as crime, heavy traffic
and pollution.
