ADDITIONS AND MAJOR RENOVATIONS - PART 6

• One in-law suite that I built for an accomplished realtor worked extremely well. A nenowned realtor had her elderly father in law needing care. She said that a nursing home would cost a minimum of $50,000 per year. She asked the cost of an addition to be attached to the rear of their residence with a small kitchen, dining room, living room, bath, and bedroom with a private entrance and deck. I priced it out at $58,000. Only $8,000 more than the nursing home alternative, but giving them the value of the addition to both use as equity and the value for sale. After three years of use and convenience, she decided to sell and move to their retirement home down south. The father in law saved over $150,000 with an outlay of $58,000. The house sold for an additional $72,000 because of the addition. $150,000 plus $72,000 minus the $58,000 cost equalled a net gain of $164,000. A great investment!
• Additions, renovations and 2 story conversions are very profitable investment projects that can be used for expanding families or a much desired improvement and then can add the cost of that project to the value of their home, possibly for sale.
• Completed additions and renovations can increase the existing value of the residence for collateral, loans or re-sale.