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mimi72_gw

So I know I'm overimproving but...

mimi72
14 years ago

I've lurked here but never posted. Wondering if anyone has, instead of upgrading their house, stayed put and made continual improvements (to the point of overimproving) just because they really like their neighborhood.

This was a compromise house when we bought in '03 based on what we could comfortably afford at the time. It's nice, but not my "dream home" and we could afford more now. We put in granite counters in '05 -- that alone boosted us to overimprovement based on the houses in our neighboorhood which sell in the high 200s (280 for ours, last year one went for 290 and ours right now would sell for about that, conservatively -- this is in the midwest).

We own acreage in the country and I want to build eventually but right now our boys just have a blast in the neighborhood with all the kids and we also have some friends to hang out with on the spur of the moment.

So now I am doing a minor kitchen remodel at about $7 k for the project. Next considering an inground swimming pool. We could move to a more expensive house but again really like this community. Our 15 yr 4.5% fixed morgage is also nice and easily affordable. The projects are paid for out of cash reserves, not loans.

So I know I'm overimproving. Has anyone else been in this situation? I suppose the answer is "go ahead if those things will make you enjoy the house more, but don't expect to get your money back from them". I don't. Any other thoughts? I'm torn -- can you tell?

Comments (12)

  • handymac
    14 years ago

    I see no problem in overimproving if a family intends to stay for a long period of time. 10-15 years will get you the benefit of most improvements in simple enjoyment value.

    The problem with improving a home is that many people do so only for resale value. And buying/selling houses on a 5 or 7 year time frame----to continually improve one's ability to buy ever more expensive property-----is part of the reason the country is in the mess we are in.

    I live in an area of older homes---built in the 60's and 70's. My house was once listed for sale at $260,000---we bought it as a foreclosure for way less than half that amount.

    So---you want to live there and have it like you want---do it.

  • eal51
    14 years ago

    Nothing wrong with staying in an area/ neighborhood that you family enjoys. And there is nothing wrong with "over improving" your home for your benefit and enjoyment.

    We did the same thing many years ago. Purchased a house, raised ranch - not my favorite, because it was vacant and the wife was pregnant with our second son. It met our needs but was not our dream house. We stayed for 24 years in that house. Over time, I basically gutted the house to the studs and re-did it. All new wood moldings, 6 panel wood doors, new kitchen with oak cabinets & tile floor. Added a 2 car garage and used the old garage space under the house for another bedroom and living space. Siding and new energy efficient windows, new and bigger deck and the like. We put in the pool for the boys - all three. It was a great neighborhood for the boys to grow up in. Looking back, we have no regrets at all. It was worth it. Many said we over did it with all we changed and updated. So be it. But many in the neighborhood copied us in what we did to the exterior look of the house - siding, windows, entrance door, front entrance, pavers for walkway.

    We sold in 05 when the market was very good and received a fair price. In fact, we sold in 8 hours - the good old days! The boys were grown by then and leading their own lives. We now live in the house of our dreams - so to speak.

    So do what works for you and don't worry about what others think.

    Enjoy the journey.
    eal51 in western CT

  • mimi72
    Original Author
    14 years ago

    handymac and eal51 -- thanks! That's what I was thinking -- stay in the neighborhood for the kids -- and when they're grown or to the stage when the neighborhood isn't so important anymore -- build something all our own. God willing -- there will be many years left to do that.

  • powermuffin
    14 years ago

    We sold our family house in 2005 when the last kid moved out. I didn't want to maintain a five bedroom house and we were looking for something different. We had it long enough so that our many improvements kept the house marketable and that is all we cared about. While I think your home can be one of the best investments you make, it shouldn't be driven by purely return on investment, especially a family home. You are doing what we did. No regrets.
    Diane

  • lovingstuff
    14 years ago

    mimi72 we are doing the same thing. We have a acre in the middle of a midsized city with woods in the back and lots of privacy. We put in the pool last year, the wrought iron fence the year before and a detached garage/storage two years before that. We are enclosing our house garage and making the house bigger. We live in an area where the hwy is very close to the house and no traffic@@@ Follow your heart, it has been a major stressor, but we are in the home stretch and we love where we live. Could we move to a more upscale area, sure but why? We will have all this paid off in the next few months and we can concentrate on finding some ranch land to buy. I am all about living the stress free life. Plus, my kid's friends love to come over and swim!

  • tryinbrian
    14 years ago

    Well, I generally agree with the other posts that basically say "go for it", but I also urge an abundance of forethought and caution. Not because you may be "over improving" but because the cost is significant enough, and the improvements life is long enough that mistakes can really hurt. Realistically, almost any improvement is an "over-improvement" because the projected "payback" usually starts at 80 percent and goes down from there.

    In many parts of the country with (previously) "hot" real estate markets, homeowners couldn't help but start thinking of their home more as an investment than a place to live. How could they not when they often made as much profit when they sold their home as they made in working for several years? I don't know if and when those days will come back, but I think improvement decisions are probably better when they are based on comparing the expected enhancement of the enjoyment, convenience or safety to the cost. It requires us to look at what we want, rather than what the "market" wants.

    Of course, some people's taste is all in their mouth, so misguided "improvements" will still occur I'm sure...

  • kcboom
    14 years ago

    Kitchen reno is supposed to be 10-15% of the value of the home.

    I spent about 13.5% but did all the work myself and I am a hell of a negotiator (almost averaged 50% off every appliance Monogram, Miele, Wolf)but figured if I hired a GC my exact kitchen reno would of been at least 25%.

    Would that be considered over spending or over renovating?

  • EngineerChic
    11 years ago

    Here is one perspective, from a fellow remodeler. As long as you can continue to save for your retirement and other long term goals there is no problem with spending your money how you want to.

    Some people get great enjoyment from vacations in exotic places, some take cruises, and some (like me) prefer to improve their homes. I get as much fun from this as some people do from vacations, and I'd rather vacation at home. Granted, I spend more on my "hobby" but it's my money so it's okay.

  • polie
    11 years ago

    I like EngineerChic's line of thinking. Don't let other goals like saving for college, your retirement, and the inevitable rainy day slip to the back burner as you remodel, but it already sounds like you are making the improvements with eyes wide open. As Tryinbrian wrote, in this environment, you shouldn't expect much payback when you eventually sell and some things like the inground pool could actually be a negative for some potential buyers. With those cautions in mind, it is your home and your money, so enjoy. Sounds like your family is in a great neighborhood.

  • worthy
    11 years ago

    Just a caution on the inground pool. I put in one after the earnest entreaties of three of four offspring. They used it for two weeks, then returned forever to the indoor electronics, leaving me with the endless upkeep and heating bills just in case they might deign to wet their feet again. I think it's the main reason I sold the house! The buyers redid the deck and fences around it but never use it.

  • onlygirlsmom
    11 years ago

    Another word re: inground pool: Keep in mind that it will only be used from Memorial Day to Labor Day. It may be longer if you live in a hot climate. We had a pool growing up (a nice 20x40 pool) and once school started, we didn't go in - too many other activities to take up our time. My mom (and my other siblings and I when we were old enough) taught swim lessons in the pool during the summer to help offset some of the costs. Having a pool is something like living in a big city with lots of great attractions-most residents don't go to them unless they have out of town visitors ;) If you go into the pool thinking your kids may get use of it 2-3x/wk and then they end up using it more -bonus! But don't expect your kids to be in it 7x/wk.
    That being said, if we could get a whoop butt heater and cover for it, I would love to have a pool now for our kids :)
    In terms of overimproving? You can't buy a good neighborhood. Enjoy it!!!

  • jjdcl
    11 years ago

    We're doing the same thing. It started with a minor kitchen remodel that did add value to the house, 100%+ return investment.

    Now, we're turning our living room into an office, which means building two 17 ft walls and putting in french doors. It won't add value to the house, but we need an office. I know many people feel the same way we do about formal living rooms, but the cost of the house is based on square footage and if the house needs to be fixed up.

    We're also going to put in a pool. We live in a hot climate so we can use ours 7 months out of the year, plus you can't go outside in the summer for more than a few minutes unless you have a pool. The only problem is it will only boost our home value $30k and it costs $50k. But, we have enough equity to absorb the cost. If we didn't, we would move because even though we plan to stay long-term things could change in a moment. We have looked at other homes in the area, but they cost a lot more than what we would owe with the pool included because our house has increased in value so much. Even though the improvement value wouldn't get 100% return, the low amount we owe + the pool is still less than a new house with a pool. So, it makes financial sense to over improve.

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