When considering property values and what affects them, you have to wonder if it makes any difference on how shiny your palace is when it comes to ROI. After all, the concept of ‘value’ makes sense with everything else:
Admit it: the better the quality, the better the value, as many H.O.P.E. to Own reviews would say. So the idea that real estate, as linear and understandable as it may be, actually increases in value when the ‘quality’ decreases can very well turn the world on its head and cause Armageddon! It’s true, though. This is the logic behind it.
Why Your Less Attractive Home Can Improve Your ROI
There’s a real misconception regarding return on investment, especially with regard to home improvement. ROI hardly has anything to do with how pricey something is. ROI is all about the return. Getting a return on selling a block of wood for $5 when you paid $3 is no different than selling a house for $500K when you paid $497K. Your ROI is still only three bucks. It’s all relative.
That’s why true property value with respect to ROI relies on the land in which the structures sit on. Therefore if your home is quite expensive due to updates, square footage and other such luxuries, you can expect the property to appreciate less than a little rent-to-own home that might be a bit lackluster.
It’s that lack of appreciation that’ll drop your ROI some. In the end, when you do the math, an “ugly duckling” might actually net you more ROI, believe it or not. In fact, might is probably not the effective word. “Most likely” is more likely it.
Don’t Let Your House Go, Though
Maintenance is key, though. If there are termites, take care of it. If the roof’s about to crumble, remedy it. But don’t be too worried about the aesthetics. You might get a lot of interested buyers in the long run, but when it comes to your bottom line, what you’ve invested in the property might be way much more than what you get back when it’s all said and done. Learn more about rent-to-own homes here and home improvement here.