What a strange but exciting time to live in! The economy is strong with low unemployment, but inflation and gas prices have been high, and the stock market has been fluctuating up and down. Fortunately, the real estate market is strong, and home values are holding. If you are a homeowner in Southeast Oakland County, you may have been discussing the best time to sell your home, or discussing renovation as an even better option. If you and your family are staying, this blog’s for you.
Before you begin any home remodeling project, consider you and your family’s needs and expectations, and visualize the proposed remodel through the lens of your existing home and its neighborhood. The following four reasons to remodel your home as a good investment now make the most sense if you plan on staying for several years or even decades. The renovation you choose should also fit your budget, and is appropriate given your home’s size, look and feel, and current market price.
Reason #1: A Remodel Grows in Value
The housing market has gotten competitive again, so everything you do to increase your home’s resale value goes a long way. Did you know that remodeling your home can quickly pay for itself and add significant value to your home? Remodeling Magazine’s “Cost vs Value Report” for the Detroit region reveals that various types of remodeling projects from garages to kitchens to master bedrooms can add up to 90% of their project costs back into your home’s value.
Another way to look at the benefits of remodeling now is through the lens of the average appreciation rate, which is about 7% per year. That means in a couple years you’ll recoup the cost of the remodel, and in a few more years you’ll actually start making money off the remodel as your home value continues to go up.
Reason #2: Remodeling Can Help You Keep a Low Interest Rate
A remodel can also help you keep a currently low mortgage rate (rather than buying a new home). Instead of refinancing your entire home, you could take out a home equity loan, also known as a second mortgage, or a personal loan. That way, you keep your current mortgage rate and only pay the higher interest on the equity or personal loan. Not only does that provide you with the opportunity to remake your home exactly as you want it — but you also end up with a home of considerably higher value.
Reason #3: The Government Provides Remodeling Incentives
Many Detroit area homeowners have benefited from receiving tax deductions on mortgage interest, useful for subsidizing a home renovation project. Cash-out refinancing and home-equity loans are ways financially savvy remodelers end up paying only the tax deductible interest on these loans, waiting to pay off the principal then their property is finally sold. These options demand little to no money down, and tax savings on the interest payments throughout.
The federal and Michigan state governments also offer several programs designed to help homeowners remodel their homes. These range from tax credits to loans to rebates, and include special programs for certain segments of the population, including seniors. Energy saving and weatherization incentive programs are also prevalent, so doing a bit of homework can go a long way to finding ways the government can help subsidize your remodeling project.
Reason #4: Remodeling Improves Your Quality of Life
Money can’t buy you love, went the Beatles song, but investing in a remodel can surely buy you and your family plenty of happiness. Think about how much time you spend in your home, and how much a renovated kitchen and living room would mean for better entertaining guests, or how a new home office would make your work-from-home so much better. Since the average homeowner stays about thirteen years, making the most of the home you already have is key.
Remodeling your existing home can also improve your quality of life by giving you and your family additional flexibility for life choices. For example, is your family growing? A new child might need a bedroom renovation or additional room. A grandparent moving in with the family might similarly necessitate a more significant home renovation, in this case maybe an entire home extension, and aging in place enhancements to ensure their convenience and security.
Remodeling is Best Done with a Trusted Design-Build Partner
MainStreet Design Build is a full service, design-build remodeling firm dedicated to creating a luxurious end-to-end experience through personal care, accountability, timeless design, and exacting attention to detail. Voted the #1 remodeler in Detroit and #2 general contractor in all of Michigan, since 1991 their in-house design team, staff of carpenters, and deep bench of skilled tradespeople have made the renovation process comfortable, enjoyable, and safe.
Having produced elegant results that transform remodeling dreams into stunning and functional living spaces, MainStreet Design Build is favored by discerning homeowners in Southeast Oakland County who value a high level of comfort and trust in knowing that their home remodeling project will be done RIGHT. Browse our luxurious gallery of award-winning local renovations, and quickly schedule a virtual design consultation. Let’s partner today!