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4 Mar 2020

3.4.20 Home renovations that pay off; Buying used clothing and furniture

Post by MoneyRadio Staff

We’re moving into the home renovation season. The National Association of Realtors and National Association of the Remodeling Industry | NARI conduct value studies and have found that a homeowner will get back 50 cents on the dollar for a kitchen remodel. So a 10k kitchen redo will increase the value of your home $5900 at best. The return on adding a master bedroom suite also yields around half. What does pay? Hardwood flooring, HVAC updates and insulating come close to recovering costs. Clark’s simple rule: The reason you renovate or add on to a home is enjoyment. Don’t con yourself into thinking you’re investing for a positive return in cash.

People are stretching their dollars by taking advantage of how much things depreciate from new to used, particularly in the area of high end women’s clothing. Nordstrom is now actively selling used clothes, joining Macy’s and others. Independents include ThredUp, and TheRealReal. Used furniture is another high depreciation category – not so much for upholstered furniture. If relocating, check Freecycle and Craigslist for furniture. 

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