We bought our first home two years ago, and like most new homeowners, eagerly went to work on improvements. In those days, the real estate market was booming, and having supposedly bought our home at a “great price” (ha!) we had plenty of money for renovations. So, completely unaware of the coming real estate crisis, we invested an additional $30,000 into our home.

Well, we all know what happened in the next two years. With the large amount of foreclosures on the market, values have dropped significantly. We now can’t even sell our house for what we originally paid for it, let alone what we have invested into it. As bleak as my scenario sounds, you should by no means avoid investing more money into your property in the current market conditions. In our case, we bought at the height of the “real estate bubble.” If you buy now, there is a pretty good chance the only place to go is up.

Additionally, you must look at real estate as a long-term investment. Sure, we became spoiled for a few years there when everything was booming and flips were all the rage. More realistically and historically, it normally takes many years to build equity in a building.

As long as we are patient, I know we will eventually recoup our investment. In the meantime, we’ll continue to make small improvements, preserving the house and making our quality of life better. After all, it is a great time to take advantage of the abundance of available contractors. Their rates are much more competitive, and many have plenty of time on their hands. Just be careful what you undertake. Lower-end to mid-range renovations are definitely the safer route right now. Consulting a realtor can help you to choose which projects are most marketable at the moment and which will be better in the long-run.

Related Posts

• What are Greywater Systems?
• Landscapes for the Highly Allergic
• Domino Falls