In the midst of this confusing housing market, budgets are tightening up, and consumers are more hesitant to spend money on their biggest asset. However, are consumers really spending money on their remodeling project, or are they investing money?
An investment would be considered a project that improves the perceived value of the home by a greater amount that the actual cost of the project. Many variables, specifically the contractor and remodeling project chosen, determine if the project is an expense or an investment.
Although this question can be debated back and forth, the value of one simple project has been proven to far exceed the actual cost of the project.
A recent study by door manufacturer Therma-Tru found that upgrading the front door of a house increased the perceived value of a $190,000 home by almost $8,000.* Estimates for new entry doors start around $2,500, so you could actually make back triple the money you spend. Think about this for a second. Where else can you invest $2,500 and instantly increase your asset by $8,000? Not to mention the increased energy efficiency, and possible tax credits available to consumers.
Remodeling Magazine reinforces this argument with their annual "Cost Vs. Value" report. This report consistently ranks the ROI (return on investment) of a new entry door at well over 100%.** The study states a new front door instantly enhances a home's appearance, and what's more, it can greatly increase resale value.
So if that complete regutting of the kitchen is on hold, take solace that you can still makeone of the smartest investments on your home for a fraction of the cost.