The Financial Reality of Home Renovations

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Episode 3593:

Sam from Financial Samurai dismantles the myth that remodeling guarantees a return on investment, explaining that most renovations recoup only about 65% of their cost. He emphasizes that true profit comes from expansion, not remodeling, and encourages homeowners to remodel for personal enjoyment rather than profit, unless increasing livable square footage is the goal.

Read along with the original article(s) here: https://www.financialsamurai.com/does-remodeling-pay-off-make-money/

Quotes to ponder:

"Almost all property remodeling does not recoup the cost spent remodeling based on national averages."

"Remodeling is a lifestyle choice with generally negative returns."

"Increase the livable square footage of the home, and you increase the home’s selling price. It’s that simple."

Episode references:

2023 Cost vs. Value Report by Remodeling Magazine: https://www.remodeling.hw.net/cost-vs-value/2023/

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