New report suggests home improvements are more valuable than savings accountsBy John Kirchner
As interest rates for saving accounts hit all-time lows, the folks at Calfinder raise an interesting question: Are home improvements more valuable than savings accounts? Yes, according to information from Remodeling Magazine’s annual Cost vs. Value Report. But that’s not to say you should close your savings account and head to the nearest hardware store.
This opinion is based on the potential return on invest homeowners can expect to see after carefully planned renovation. For instance, a kitchen remodel averages a 72.8 percent turn while a bathroom returns nearly half. Even window replacement averages a 72.4 percent return.
Renovation doesn’t always require a hard hat and sledgehammer. Calfinder points out some smaller projects that can have a huge impact on your home’s value:
- “Make your bathroom feel larger by repainting it with a light semi-gloss, replace flooring with large 12-inch bathroom tiles to minimize distracting grout lines. Add larger mirrors.”
- “An average kitchen remodel takes nine months to plan and three to build—but you can improve your kitchen in a weekend by resurfacing cabinets and countertops, adding a new backsplash, and updating drawer pulls and other hardware.”
Does this mean you should drain your savings account to morph you home? Hardly. But it does mean you can smartly invest in your home and reap the benefits immediately and in the future.
[Photo from Houzz]