10 Home Renovations That Offer the Best (and Worst) Return on Investment

Remodeling may be a labor of love, but it’s also an investment that can seriously boost the value of your home.  Only by how much? Well, according to Remodeling magazine’s 2016 Cost vs. Value Report, you’ll recoup an average of 64% of what you paid for a renovation if you sell your home this year.

To arrive at these figures, Remodeling asked consultants in various markets to estimate the average cost for 30 home improvement projects, from adding a bathroom to replacing a roof. Then, they asked real estate agents nationwide to estimate the expected resale value of these renovations so that readers could compare their out-of-pocket costs to how much money they’d get back when it came time to sell their home.

So, what projects gets you the most bang for your home renovation buck? It may not be nearly as sexy (or fun!) as adding a chef’s kitchen or glam bathroom, but attic insulation gets the top spot. That’s right: Stuff some fiberglass insulation into the walls of a 35-by-30-foot attic, and you’ll pay an average of $1,268. But when you sell, you will rake in $116.90 for every $100. For you math-challenged out there, that’s a recoup of 116.9% of your costs. It’s the only home reno on this year’s report that redeems more money than you spend!

The next best-paying renovation on the list: manufactured stone veneer, offering a respectable 92.9% return.

Meanwhile—sorry, luxury tub fans—the home improvement project that reaps the worst ROI is the addition of a bathroom, at 56.2% (although the “added value” of an extra bathroom for anyone who’s ever had to wait their turn for one is, of course, priceless).

Take-home lesson? If you’re looking for a general rule of thumb, it’s that less is more: Lower-cost projects  generally reap bigger returns, with four of the five projects that cost less than $5,000 ranking among the top five for money back when you sell.

Check out the best (and worst) returns for home renovations in the two charts below, including how much you’ll pay and get back if you sell your home this year.

Shared from:  http://www.realtor.com/advice/home-improvement/heres-how-much-remodeling-pays-off/

5 Types of Properties That Make the Best Investments

When it comes to real estate, it's typical to hear that location is everything. While that is certainly a critical aspect of any real estate investment, so is the type of property you're considering purchasing. There are many kinds of property choices, both for those that produce income and those that don't, and each will have its own factors that help to determine whether or not it ends up being a successful venture. Though any investment involves some percentage of risk, there are certain properties that have less risk than others and generally yield a nice return. Below are the types of properties most people find to make the best investments.

OFFICE SPACE

As businesses in various industries continue to grow and flourish, there becomes an increased demand for office spaces. These properties are greatly desirable due to their common location in bustling downtown areas and big, impressive office parks. Owners of office real estate can make a generous profit with high rental rates and long term tenants in areas that enjoy a positive economic environment.

MULTI-FAMILY RESIDENTIAL

Multi-family residential units are often where newer real estate investors choose to place their money, and for good reason. As long as you find a property that is in good condition and in an appealing neighborhood with low vacancy rates and are able to fill it with credible tenants, this can be a fairly simple way to earn quite a bit of money over time, even more so than with commercial properties. It's a fact that people will always need a place to live, making it easy to keep spaces full while collecting a stable income.

SINGLE-FAMILY RENTAL

Just like its multi-family counterpart, owners of single-family rental properties can look forward to a nice, steady cash flow each month and to making a profit even after all expenses are taken care of. Rental properties can frequently be purchased for less than market value, and they give owners the chance to take advantage of some considerable tax deductions.

RETAIL

Retail locations may include stand-alone brick and mortar buildings or entire shopping centers. Oftentimes, in shopping center situations property owners find they fair much better if there is an adjacent retailer that is well-known and will draw large crowds, such as a Wal-Mart, Target, or grocery store. Something to keep in mind is that, although owning a retail property can seem high-risk since performance and sales are largely based on the prosperity of the economy, retail tenants usually sign longer leases and are less likely to relocate than companies renting office space.

INDUSTRIAL

Industrial properties can also be a good place to start for first-time real estate investors. Owners can typically count on lower operating expenses, less hands-on management, and require smaller amounts of money to invest. These properties are utilized for a wide range of industrial uses and must be functional for its specific purpose, sometimes needing office build-outs and a large outdoor space.

Whichever type of property you choose to invest your time, money and efforts in, you will want to consider the neighborhood, property taxes, crime rate, local job opportunities, number of nearby vacancies and future development plans for the area. All of these factors will play a significant role in how successful your real estate investment turns out to be.

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Things You Need To Know About Real Estate Investing

Investing in real estate can be very profitable if you have the right information, but many people don't take the time to learn the correct way to do it. It begins with great advice and careful study. Keep reading for some of the best tips for investing in real estate investing.

You need to decide the type of real estate you want to invest in prior to beginning your first property. You might find that real estate flipping ideal for you.

Be sure that you spend enough time on the endeavor to really understand it. You might have to give up some leisure activities in order to make more money over the long haul. Ditch poker night or softball league that you go to in order to become a better investor.

 Location is critical in terms of successful real estate investment. Property conditions and other factors are usually subject to change. Properties that are within depreciating areas will almost always result in a wise investment. Always do your research property before investing any money.

Get to know other people who invest in the real estate. It's important to reach out to others and to hear what kinds of advice from those more experienced than yourself. It can be useful to have contacts who know a few real estate investor friends. You can find some online. Join a few forums and make an effort to meet some of the users.

Be certain to choose investment properties that have good reputations and where lots of people want to live. This is important because it could give you the best amount of resale value when you make your purchase. Try looking for properties that can be kept up easily.

 You may be shocked to find most people do the negotiating for you if you sit back and let them. Also, because you are listening, you will be able to pinpoint the time when you can grab the exact price you are looking for.

This will help you get on the right foot. There is nothing worse than you having to cover part of the mortgage payment from your own pocket because a renter is behind.

 Don't spend your money in real estate without researching the field first. Errors in investing can be extremely costly.

 Consider the possibility of renting the house out when you're projecting how much you'll make off of rent when considering how much a property is worth. This can elevate the property value and also give you plenty of money for you. Then you could resell the house for a larger gross profit.

 It may even be illegal to dig before checking for lines, and it pays to find this out up front.

 Now that you have the information in this article, real estate investing should be much simpler. Everybody can be successful when sticking to what works well. It's always smart to keep learning about these things, so always look for more advice on the subject like what you've gone over above.

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