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Worst Home Improvement Projects for Return

Updated on April 25, 2012

Introduction

Not all home improvement projects are great investments - in fact some are a terrible idea from a financial point of view. This page will help you spot the ones that might not pay you - as well as a couple of ideas - like a new kitchen or building a deck, which probably will.

Superb Remodeled Kitchen
Superb Remodeled Kitchen | Source

Projects to Think Twice About

Before you begin any home improvement project, you need to decide if you are worried about how much of a return you will get for that particular project. If you are concerned about resale value, you need to research if a project is going to add to the value of your home, or if it will make your home more of a challenge to sell. Use the following information to get some insight on some of the most common bad home improvement projects for return.

When considering return value, a pool is one of the worse investments you can make on your property. They are expensive to install and maintain and can make it more difficult to sell your property. Potential home buyers may consider them to be a safety hazard and know that they are going to have to dedicate a lot of time each summer maintaining it.

When you look at your two small bedrooms and picture them as one nice, open space for your guests to sleep, you may think that it would be a great investment to transform those two small rooms into one. Think again. You are not going to get any of the money back that you invest into this project when you sell your house. The more bedrooms your house has, the more attractive it will be when families come looking at it to buy it. Your return is unfortunately only going to be about 60 percent of what you invest in it.

Fitting Insulation is normally a good home improvement - but it only makes financial sense if you're planning to stay in your home for a few years. If you're thinking about selling up within the next couple of years, you won't get your investment back - because people won't pay extra for your loft insulation. But if you're staying put for a while, you could reap the benefits for years in the form of reduced energy bills.

Adding a garage to your house may seem like a great idea in the sense that you will have a place to store your tools and garden equipment and park a second car, but the money you will invest into building it might not make it worthwhile. A garage is expensive to construct and often, when buyers are looking at your home, they see it as an unnecessary addition to the home. You may only get about 50 percent return on an expensive project like that.

Remodeling your home office has one of the lowest return rates compared to anything else you could do to your home. You are only going to get about 40 percent of your investment back when you sell your home. Seriously consider if you need to invest all of that money into a home office. You may find it wiser to invest it in a bathroom or kitchen where the return rate is closer to 75 percent.

Adding a master suite to your home will attract some buyers, but for others it is wasted space that could have been used for something better. If you invest in adding a huge master suite to your home, you will only recoup about 58 percent of your initial investment when you sell. If this is something you truly want in your home, it may be worth it if you are going to remain in your house for several years.

You now have a good idea of the worst investments you can make into your home if you are looking for high rates of return. Consider your projects wisely to be sure you are doing what is right for you financially.

How to Build a Deck - Part 1

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    • Manna in the wild profile image

      Manna in the wild 6 years ago from Australia

      Interesting article. It is surprising to see what turns a negative investment. It would be useful to get an idea what turns a positive investment.

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