So we bought our new place a little over a year ago. Since then, we’ve put in approx. $3,000 in insulation, $5,000 in new windows, $5,000 for a new roof, and $4,000 in new appliances. Since buying the appliances and talking to an electrician, it turns out we need to upgrade our breaker box and rewire. This’ll be about another $2,000.
We paid a little over $300,000 for our place, and Zillow places our current house value a little on the low end of the homes in our neighbourhood.
On our immediate block though, we’re pretty well the upper end of the scale. Our direct neighbour is a renter whose landlord hasn’t done a thing to the place. Cracked, taped-over windows. Rotting, falling down fence. An abandoned car in the driveway. Crappy looking. Another neighbour has forgotten how to mow his lawn, or bring in the multitude of lawn furniture strewn about. It’s pretty ugly.
So so far, we’ve put in approximately $17,000 into making our house nicer, and will probably spend another $2,000. There’s a lot more we could do, too. The previous owners did not keep this place up very well. But how much more before we’re spitting into the wind? How much before our neighbours drag us down?
I’ve firmly decided the gold-plated taps are out. But how about the new shower door? What do you guys think?
How long do you intend to live there? If you are fixing it for resale, then I would focus on the things that make the biggest difference, kitchens and bathrooms.
If it is for your own enjoyment, to better YOUR sense of pride in your home and you intend to live there for a significant amount of time, I say splurge, get the gold taps and the shower door. Paint the walls, hang pictures and put flamingos in the yard. It is your home.
So far, everything you’ve done could come under the heading of good, basic maintenance. The new roof, windows, and insulation will save you money in heating and cooling if you plan to stay for a few years.
Maybe your neighbors will follow your example!
Do you plan to stay in the house for a long time? Do whatever you can afford to make it safe and comfortable.
Bugger. Mean to put this in IMHO; if a mod sees this, would they be so kind as to shift it on over?
We’re looking at staying here at least 5 years. This is our first house and we’d like enough time in to get a little equity. So we’re not gonna retire here, but we’re not putting the house on the market next month, either.
If you’re looking for payback when you resell, modernize your kitchen and bathrooms, complete any unfinished basement areas, and sheetrock your garage. These items will enhance the sell-ability of your house and you can get up to 90% payback on your investment.
Well…we’re not looking for payback per se. We’d like to be able to get what we put into it, plus a little more to upgrade when we do move. And at the same time, we want to be able to live in a place we like.
A note about Zillow in the Puget Sound area: it can be wildly inaccurate. The house we spent months selling zillows at almost 200K higher than we sold it for (didn’t we wish) even though it shows the recent sale price and comparable sales in the area that don’t support that zestimate at all. Cyberhomes is a little less delusional, but not much.
As to your question, I would only spend for my own satisfaction and even then, only if I were planning to stay for several years.
Since you’re going to be there for another five years or so, do what you need to do to make your house comfortable for you.
I would worry about the neighbors, though. The look of the neighborhood can be off-putting to potential buyers. But who knows what could happen in five years?
That boggles my mind. I can’t imagine a neighborhood with that kind of price and that kind of neighbor!
I know what you mean about the strewn furniture, however. There’s a house near me that has so many tables and chairs on the lawn that folks frequently think a tag sale is going on. At least the average value here is a third of what you paid though, so it makes more sense.
Do the electrical upgrade, it’s totally worth it. The new shower door is worth doing for yourselves, and if gold-plated taps make you happy then go for it. You can’t know what condition the rest of the homes will be in five years from now, the landlord might sell out to folks that will improve things for instance. So you’ve done a lot of structural improvements, now do things for your own enjoyment.
Like others have said, all the things you have mentioned are basic upkeep items, things that will pay back in reduced costs and/or more comfort during the 5 years you expect to live there.
But regarding the unkempt houses in the neighborhood, check out your city ordinances – such things are often violations. Here in Minneapolis, both the abandoned car and falling-down fence would be. (But probably not the taped-over windows.) Also, the neighbors un-mowed lawn, if over 6" high, would be a violation. And I bet the city inspector would find a few others when he came out. So call the city and complain about these housing violations.
I can! Then again, this is Fairfax County, VA where 300K will at best buy you a hovel or a 2BR apartment.
That said - put in what you need to to make the house more pleasurable for you to live in. Maybe don’t go for massive high-end stuff (e.g. those gold-plated taps).
Normal maintenance on a house will over the course of say 20 years average about 1% of the value of the home per year. So a $300,000 home over the course of 5 years you would spend on average $15,000 on general maintenance.
The 1% cost is not a hard and fast rule, but it is a good estimate of future expenditure.
The neighbors are a worry though, as they will drag down the price of your house.
Just an idea, but I have seen and heard of many cases where doing cosmetic repairs and fixes to the outside of the house actually starts a trend in neighborhoods.
Plant some new trees and plants, paint the house or porch or whatever, fix the cracked pavement in the driveway, put up a white picket fence - you get the idea. Others see it happening, it drives up the prices of homes in the area and next thing you know, the entire neighborhood starts to follow suit. Doesn’t always work, but landlords notice things like that, as do real estate agents and especially other homeowners thinking of selling their homes sometime soon.
Thanks all, for the replies. I think we’re definitely going to do the electrical bit. Winter job’ll be to turn the concrete and dirt laundry room into a real laundry/bathroom, to go with the finished basement. Next summer will be repainting and building a new deck. Immediate work is refinish the upstairs bath in time for Thanksgiving, as well as install the new appliances once the electrician’s done his stuff.
We’re going to be looking to refinance in the next few months or so to get rid of that pesky 20% of our 80/20 loan, so it should be easier going from there on.
Sadly, I doubt the neighbours’ll ever leave. As mentioned, one’s been there for 10+ years, the other since they built the development in 1969.