Is Your Home Improvement Project Worth the Cost?
As you approach retirement, you may find yourself wanting to renovate your home. It's important to keep these costs low while increasing the value of your home.
Updated on Jun 12 2020
As you enter your retirement years, you may find yourself wanting to renovate your home. If you’re happy with the location of your home, have paid off or have nearly paid off your mortgage, and can see yourself spending the rest of your life there, you may want to do some home improvement projects to make it your dream home. Or, you may be considering your home part of your retirement plan, so renovations can increase the value when you decide to sell and downsize. Regardless of the reason to renovate, it’s important to do your research to keep these costs low.
Make a plan
The first step with all home renovations is having a solid plan to follow. What exactly do you want to get done? If you go into your home improvement projects just saying “I want a brand new kitchen!” you will most likely spend way more money than you need to. Create a list of wants or must-haves and then come up with a plan to make it happen. Go over every detail of the space you want to renovate so that when renovations start, you have something to reference. It’s easy to get excited about home improvement, but the costs add up quickly if you don’t plan ahead.
Do your research
There are countless free sources available online about home improvement and renovation projects. YouTube has hundreds of legitimate videos that you can learn from. Pinterest is a great place to plan and be inspired. Budget Dumpster has a comprehensive guide to DIY home improvements that you can do without hiring anyone.
Another step in the research process is to understand what buyers want in a home. If you are selling your house down the road for retirement income, your renovations should reflect what current buyers are looking for. This can be anything from open floor plan layouts to marble versus butcher block countertops. Knowing what will increase the value of your home is essential for a successful home renovation. Financial advisors are helpful here. They’ll be able to guide you through this process and determine what you can afford to do and what you can’t.
What can you do yourself versus when should you hire?
If you are doing a home improvement project, you will almost certainly find that there are some aspects of it that you need to outsource help with. While you may be able to take care of some of the smaller things, like painting, changing faucets, even installing new cabinets, there will be some projects like plumbing, etc. that you will need to hire a team for. Be realistic about what you are capable of doing. If you try to do everything on your own, you may end up in a worse place than if you hired someone else in the first place.
Home renovations and improvement projects are a great way to increase the value of your home. However, it is easy for costs to go out of control if you don’t do your research and create a plan. A financial advisor can help you determine your priorities and what you can budget for.
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