8 reasons to invest in your home
(MONEY Magazine) — Not long ago, you could have your big remodeling project and get your money back too. Owners recouped an average of 87% of home improvement costs at resale in 2005, according to Remodeling magazine.
But by 2010 the magazine had pegged the typical payback at just 60%. Hardly the right time to tackle the new kitchen or master bathroom you've been dreaming of, right?
Not so fast, says Kermit Baker, senior research fellow at Harvard University's Joint Center for Housing Studies.
"In many cases, these projects make more sense now than they did at the height of the market," he said.
Assuming you like what you can't change about your home — the neighborhood, the school district, the proximity to things that matter to you — and you're planning on staying for five or more years, improving your home is a smart move. Here's why.
1. Funding is cheap
2. Eager contractors are discounting
3. Materials have come down
4. You'll cut your energy costs
5. Fixing up costs less than trading up
6. You can keep that sub-5% mortgage
7. Smart projects still add value
8. You get to enjoy the results