• home improvements that are bad investmentsHome Improvements That Are Bad Investments

    Many times over the years, our clients have asked us which home improvements added value to the prices of their home. At Robert Floris’ Mortgage Architects office, we have discussed the renovations that are truly beneficial to the price of your home. However, we started thinking about home improvements that are bad investments; improvements that do not add value. Here is what we came up with:

    1. Large Scale Landscaping

    Although beautiful, potential purchasers are not willing to pay extra. For some it may even be considered burdensome to keep up.

    2. A Swimming Pool

    Pools are definitely family fun, but not for every family. It is recommended to keep your pool purchase between 10 to 15% of your home price. Have fun, but do not expect to get a good return.

    3. Partly Finished Home Upgrades

    Some houses have beautifully upgraded rooms like bathrooms. However, the remainder of the dwelling is antiquated and needs attention. Homeowners focus on what is still required to maintain a consistent style and thus, will not pay extra.

    4. Invisible Improvements

    Projects such as added insulation, upgraded wiring, a new plumbing system, or HVAC, are nice and needed. However, potential purchasers expect to have them in the house and do not necessarily expect to pay for them.

    5. Solar Panels

    I realize they are getting more popular but in my humble opinion, it really does not look good. Whether it looks good or not, most importantly it really does not make you more money in the resale market.

    Other areas when considering home improvements that are bad investments are wall-to-wall carpeting, wine cellars, a sunroom addition, and even room conversions.

    We hope you find this as interesting as we find it!

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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