Thursday, August 19, 2010

Upgrades to your home

Some months back in my newsletter, "The Marsoun Report" I commented on how people are seeking more contemporary settings for a potential purchase as opposed to more traditional settings.

I was discussing this with a friend over the weekend, and we kind of surmised that a good rule of thumb is to plan for about a 1% annual contribution for the updating of a home.

Therefore, a house costing $250,000 should plan to reinvest about $2,500 a year in upgrades. That amount in any one year may not seem like alot, but when you consider every 4 years it is a $10,000 improvement, it starts to make sense. Couple that with the ability to enjoy the upgrades while living there and it makes even more sense.

The potential benefit of this reinvestment will be a higher resale value when the home is put back on the market. So sharpen your pencils, and make plans to get on the upgrade train.

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