Designer Felix Guyon shares a penthouse in a 25-storey building on Nuns’ Island in Montreal, with a stunning view of the Saint Lawrence River. Personal preference projects are nifty items that you want but that other people may not like or be willing to pay to get. In most areas of the country, these include amenities such as swimming pools, tennis courts, hot tubs, wine cellars, basement game rooms and ponds. Believe it or not, a swimming pool rarely adds value to a home in this day and age. First of all, it usually costs a small fortune to have an in-ground pool installed. Secondly, many homebuyers view a pool as a high-maintenance hassle and safety hazard – and for something that’s useable only a few months out of the year (unless you live in a tropical climate, of course).
Are you handy? If so, you could cut some costs by doing the work yourself. But be honest with yourself: Do you have the time or the aptitude? If not, then you’ll need to pay someone to do the work. That means taking all expenses into account—not just labour and materials, but also permits, as well as additional overhead. Remember, the people you hire will make a profit. That’s their job. If that doesn’t sit well with you, consider learning how to do the job yourself.
The best way to pay for any home improvement is using savings since it means you won’t have the added expense of loan interest to bear – that’s if you have savings in the first place. However, if you do need to borrow the most sensible way is to add the cost to your mortgage. But only if you can persuade your lender to release additional funds and you have the ability to repay ! Otherwise, it might be your friendly local credit union but again only after you have budgeted properly to justify the monthly commitment. All in all, your house would get an uplift and so would you.
Granted, some of the roughly $200,000 increase in home value had to do with the Austin market’s 20 percent appreciation in the Harmeses’ 3½ years of stewardship. But it’s also a testament to the couple’s savvy instincts about what today’s buyers are looking for, especially now that millennials, 75 million strong, have become the leading cohort of buyers, purchasing 32 percent of homes in 2014.
In the past, it was critical for homeowners to save receipts for anything that could qualify as an improvement. Every dime added to basis was a dime less that the IRS could tax when the house was sold. Before a hammer hits a nail you must first decide how you will pay for your home renovation project. Like all consumer spending, paying for a renovation is best done through savings. By saving up the money, you’re more likely to stay on budget because you have more time to research costs and plan the project.