Myth: All home upgrades will increase your home’s net value. Now the Truth: You’ve just wasted your time and money.
Yes, like your teacher always told you, it is a free country, and you really are definitely more than welcome to make just about any upgrades you would like to your own house. But unless it was just for the sake of your personal pleasure, we wouldn’t advise the following renovations, mainly because addition does not equal profit.
However, if you are wanting to upgrade your house’s value (beyond the cost of the initial renovation itself), you should definitely keep in mind that some upgrades that may seem valuable to you might not be of any significant worth to potential buyers. So here are three of most common upgrades that most likely won’t see a return on your investment
Upgrades That Add Minimal to 0 Value to Investment Property
Honestly, pools are quite the toss up with regards to the value of the house. It is possible that you could see some sort of return because of this addition, but more often than not, it wouldn’t end up being enough to pay for the addition itself.
This is because having a pool onsite might be a turnoff for some potential buyers. A large proportion of homebuyers do not wish to have to maintain the maintenance of the swimming pool, and those on tighter budgets would most likely not want to cope with the extra expenses that come with having a pool. As well as, it poses as a safety hazard for prospective buyers with small children. If you do decide to add a pool, make sure it is a desirable home feature in your local market among buyers.
Highly Customized Designs
You’ll want to stay FAR away from designs which can be too personalized. This is purely because your idea of a dream kitchen might not be everyone else’s idea of a dream kitchen. So unless you are intending on moving into the home for quite some time in the future, We would recommend thinking long and hard about renovations which can be too “custom designed.”
Always remember the personality of your neighborhood while you are contemplating an upgrade because if your upgrade is simply too over-the-top for your area, you will end up causing the alienation of buyers on two fronts: those potential homebuyers that like your neighborhood might not be able to afford your house, and those potential homebuyers which could actually afford your house would probably prefer to live in a more luxurious area. So being slightly nicer than the surrounding houses can work in your favor, but being considerably more lavish will not.
