Home Upgrades with the Lowest Return On Investment #realestate #homeownership #investment

Source:  HouseLogic, Lisa Kaplan Gordon

Home owning isn't just about building wealth; it's also about living well and making memories -- even if that means outclassing your neighborhood or turning off future buyers.  If any of the upgrades below is something you can't be dissuaded from, enjoy!  Here's why:

- Outdoor Kitchen
The fantasy:  You're the man -- grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen.

The reality:  For what it costs -- on average $12,000 to $15,000 -- are you really going to use it?  Despite our penchant for eating alfresco, families spend most leisure time in front of some screen and almost no leisure time outdoors, no matter how much they spend on amenities, according to UCLA's "Life At Home" study.  And the National Association of Home Builders' 2013 "What Home Buyers Really Want" report says 35% of mid-range buyers don't want an outdoor kitchen.

The bottom line:  Instead, buy a tricked out gas grill, which will do just fine when you need to char something.  If you're dying for an outdoor upgrade, install exterior lighting -- only 1% of buyers don't want that.

- In-Ground Swimming Pool
The fantasy:  Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer.

The reality:  Pools are money pits that you'll spend $17,000 to $45,000+ to install (concrete), and thousands more to insure, secure, and maintain.  Plus, you won't use them as much as you think, and when you're ready to sell, buyers will call your pool a maintenance pain.

The bottom line:  If your idea of making it includes a backyard swimming pool, go for it.  But, get real about:
- how many days per year you'll actually swim
- how much your energy bills will climb to heat the water ($760 to $1,845 depending on location and temperature)
- What you'll pay to clean and chemically treat the pool ($20 to $100 per month in-season if you do it yourself, $75 to $165 per month for a pool service)
- the fact that you'll likely need to invest in a pool fence.  In fact, some insurance carriers require it.

- Backup Power Generator
Your fantasy:  The power in your area goes kaput, but not for you.  You were smart enough to install a backup power generator.  While the neighbors eat cold hot dogs by a flashlight beam, you're poaching salmon in your oven and pumping out Red Hot Chili Peppers tunes.

The reality:  Power outages may seem to go on forever, but they don't.  Fifty dollars worth of batteries can power portable lights, radios, and TVs; a car adapter will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days.

The bottom line:  If you live in areas where power shortages are the rule, not the exception, spend the money for reliable backup power:  Your still-frozen steaks, home office fax, and refrigerated medicine will thank you.  But if the power goes out rarely then installing a standby generator is overkill.

- New Windows
The fantasy:  Brand new windows that don't stick, and slash energy bills.

The reality:  A $15,000 vinyl window replacement project will return about 80% of your investment at resale, according to the "2015 Remodeling Impact Report" from the NATIONAL ASSOCIATION OF REALTORS.  And if they're Energy Star-qualified, they can save you around $300 in energy bills per year.  So, plan to live in your house about another 10 years to recoup the cost of new windows.

The bottom line:  We get it --  new windows are sturdy, pretty energy savers.  But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs.  And if you spend about $1,000 to update insulation, caulking, and weather-stripping, you'll save 10% to 20% on your energy bill.

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