Over renovations of homes.

Okay there is such a thing called renovation of a home. You fix some stuff, maybe change the color of the house, add a room, do over their kitchen, construct a new bathroom, add an in ground pool, do landscaping. But when all this comes together than you have a problem. If you are going to spend the same amount of money on renovation that you spend on buying a house, I see that as an overkill of sorts. I can understand that maybe the neighborhood is nice or your kids don’t want to move, but to have a super major do over is to me a waste of money. You had rather be fine with having bought a property with the same amount of money.

This kind of major renovations will definitely increase your property taxes, so why not split those increases by buying another property and renting it out. I also know that being a landlord is not everybody’s cup of tea but still it is an investment rather than expanding the same house on the same amount of land, going to major permit hurdles and annoying neighbors in the process just that you have super extra space. As I said before a renovation here and there is fine but when you have spend hundreds of thousands of dollars on a house worth almost the same amount of money then your priorities are out of sync. And on top of that, if you want to sell the house further down the road, you may find it hard to find comparables so that the buyers and the appraisers can make comparisons since your house is a unique property in a neighborhood of middle class homes.