There was a time when contractors building McMansion-style home additions or Michelin-worthy kitchens were a regular sight in many neighborhoods — until around 2006, when the Great Recession began to take hold.
Here’s the good news: home improvements are starting to add value in a rising housing market. Here’s the bad news: you have to be very careful about the renovation or remodeling projects you select to avoid over-stretching your budget.
In 2014, completing successful home improvements comes down to two critical questions, will you get most of your money back when you sell your property (the days of 100 percent-plus returns on renovations are over, at least for now) and how will project costs affect your overall financial plan?
Here are questions to fuel your planning:
• How long you plan to live in the home after the renovation. The Great Recession proved many homeowners didn’t recoup elaborate — or sometimes modest — improvement costs when selling their homes. Even in a recovering market, it’s good to be wary. For now, renovate for the long haul and your personal enjoyment, not overnight sale.