am i putting too much money into my house?
i bought a house last year that was built in '79. so far, i've spent about 10k redoing 2 bathrooms, sprucing up the basement, and a good amount of landscaping. i'm planning on doing the kitchen and the last bath as well. i've been doing the work myself, and i've been using nicer materials like travertine floor tile and granite countertops. i'm still not sure whether or not i will sell it in 3-5 years or hold onto it for a rental. it just seems that, living by myself, i would be able to save more money with an apartment that has no repairs. i bought the house at the bottom of the market, so at it's remodeled condition, i would profit about 40-50k. it sounds good, but is my time and labor really worth it?
as long as you don't spend the 40-50k you plan to profit, before you sell then duh, it's not a waste. 3-5 years in todays market is prolly not long enough to hang on. the market will continue to see more & more foreclosures & short-sales over the next 3-5 years, which will effect the selling price of your property. this is due to the numerous ARM's (adjustable rate mortgages )given out by banks in the last 3-5 years that will be coming due for interest rate hikes set to change at the 3,5,6,7,8,9, & 10yr mark. as rediculous as it sounds you could end up with no equity, no savings, and a house you can't unload for what you paid for. don't count on appreciation. even here in NE where our lending practices have always been quite conservative, there hasn't been any appreciation in the last 5 years anyways.
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