It may surprise you, but investing in fancy home improvements may not pay off.
If you want to go overboard on mosaic marble tiles in your kitchen, or a Jacuzzi tub in your bathroom, by all means go ahead. But do it for your enjoyment – not to increase the value of your Bahamas real estate.
Those marble tiles that are gorgeous today will be dated tomorrow. And as for the Jacuzzi, they're already yesterday's news.
In other words, just because you pump a certain amount of money into your Bahamas home doesn't necessarily mean your home is worth that much more. The same holds true anywhere.
If you're thinking about selling in the next year, it's the basic improvements that will probably generate the greatest return on your Bahamas real estate.
What good is a designer kitchen if the house is infested with termites or the roof is leaking? Buyers expect basics, such as good windows, roofs and plumbing, to be in good repair.
Having said that, once your house is in good shape, there are projects that can increase the real estate value, depending on location.
For instance, adding a nice deck can earn you a full return on your investment within the first 12 months or so.
Decks and outdoor kitchens are very popular in our environment here in the Bahamas.
High end kitchen and bathroom upgrades, or a
pool, will add to your home's appeal. Just don't count on getting a full return on your investment.
The more dated your remodeling projects become, the less likely you are to recover the cost. As we implied earlier, styles come and styles go. That's why it's best to stick to classic styles if you're upgrading as an investment.
Your return will depend on several factors, including market conditions and the value of the homes in your neighborhood
A house that's priced higher than other homes in the area may not draw much interest, even if it does have more space. You wouldn't build a two-storey, five bedroom house in a cottage community.
Avoid having “too much house” for the area.
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