The benefits will vary from home to home depending on the homes condition and/or the year the home was built in. Generally renovating older homes results in an increase in value, modernization, reduction in utility costs, and structural improvements.
Oftentimes houses are neglected and are under-maintained, as a result, the houses rot down and the renovation expenses become more expensive. It's a similar process to keeping maintenance of your vehicle. The more maintained a vehicle is and certified records backing up those maintenances, the more of its value is upheld on the market. Houses are the same, they don't appreciate in value, in fact, the general land lot appreciates in value due to increased demand.
Because the materials in homes do not go under a lot of stress such as in vehicle engines, they will generally last longer than vehicles. Like all materials in the world, wood has its own natural decay cycle. Here are some life spans of materials: Pressure-treated wood is designed to last at most 40 years without any signs of rot or decay. Decks and Flooring may only last 10 years(Lumber). Without proper isolation and lots of humidity the structure of your home maybe begin to rot because of siding or the cabinets were not installed properly.
May as well knock everything out of the way now and maintain your property in a healthy condition to protect your equity and reduce your risks of incurring extra maintenance costs in the future.
Watch the video below, from a well-established real estate investor and learn from there mistakes and how you can improve managing your rental portfolio.
Perhaps remodeling may be out of your planned budget. Consider cheaper alternatives such as refacing, resurfacing, perhaps doing it yourself—costs you your time: learning and building—or financing.
Frequently Asked Questions
How much should I spend on a remodeling project?
The remodeling cost will vary from materials, room size, labor cost/service provider, whether you are going for a luxury home, etc.