Remodel or Move?

Remodel or move?  In the November 2009 publication of Remodeling Magazine there was an article about the return on investment of various home improvement projects.  They ranged from 128% return on investment for a new steel front door to 50% return on investment for a sunroom addition.  So, how long are you planning on staying in your home?  This is the first question that you need to answer when trying to decide which to do.  The returns may not seem like they are worth the investment, but that doesn't mean that you shouldn't consider it.  If you are planning on staying in your home for more than a few years now may be the best time to start your remodeling project.  Due to the lack of new construction and the fact that we haven't seen a natural disaster in a while material cost are fairly low.  Another good reason is that due to the slowdown in the construction industry many contractors are doing work at lower prices in order to stay in business until the economy turns around.  A third reason is that interest rates are low which can decrease the long term cost of the project.

  On the other hand, if you do not plan on staying in your current home for more than a few years and have lived there for more than 5 years you could qualify for the homebuyer tax credit.  On top of that interest rates are at or near all time lows, which could mean huge savings in the long run.  I know that this might not help you make your decision any easier, but I hope that I have given you a little information on the topic.  If you are thinking of buying or remodeling there may never be a better time to do either than right now.  How long will it last?  Nobody really knows, but if you are in a position that allows you to act know I would strongly recommend that you do so.