Owning a house. - Page 9

elus2 · #81 05-30-2007, 05:12 PM

Why would you need to launder poker winnings. Just declare them as regular income no?

turnipmonster · #82 05-30-2007, 05:50 PM

these rates of return are much higher than what I would have expected for national averages. given the research I did, I guessed that the vast majority of people are overpaying by a lot for renovations, and yet returns for kitchens are in the 90s. I'll take 90% of any contractor's quote on the work we did 6 ways to sunday [img]/images/graemlins/smile.gif[/img].

TheMetetron · #83 05-30-2007, 05:52 PM

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in my original post, I asserted that you can have the opportunity to make +EV investments in property you own, not that all of said investments would necessarily be +EV. if I am wrong on this, and metetron seems to think I am, then I'd like to hear why.

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If you do the work your self, and count your time as worth zero, then you should be able to make +EV investments. But honestly, your time is worth something, probably more than the contractors billing rate if you have a good paying job (or play +EV poker).

Here is an article on the issue.

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Bingo, I was counting your time as worth something. If you consider your time free that's a really weird way to look at it but you can skew it in your direction. Otherwise, worth of house + cost of improvements is almost never > new worth of house.

kagame · #84 05-30-2007, 06:28 PM

desert cat saves the day

maxtower · #85 05-30-2007, 06:36 PM

If you do the repairs yourself assuming you make about as much as the contractor charges, it could be a good way to pay yourself tax free when you get the 2 year tax break thing. Make sure the work you are doing is one of those high percentage paybacks though.

turnipmonster · #86 05-30-2007, 06:50 PM

if rates of returns are correct in that post, I am positive there are cases where you can contract out all the work and still make a +EV decision. if you're doing the work yourself, you can always think of it as paying yourself an hourly rate instead of ROI.

quality of life improvement (which I personally care much more about than ROI) makes it a huge freeroll.

btw, I am not saying you can't make massively -EV home improvements obv, hope that's clear.

turnipmonster · #87 05-30-2007, 06:52 PM

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Otherwise, worth of house + cost of improvements is almost never > new worth of house.

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this is what you said before, I'd like to know why you think this is true "almost never". if average national return rates on kitchen upgrades are ~90%, and there is a large variability in what people are paying, it seems clear to me that there are many people getting a ROI > 100%. quite possible I am being stupid though, so if I am please explain why.

elus2 · #88 05-30-2007, 07:08 PM

I thought that data was supposed to read as: for every dollar spent, you get 90 cents back.

Edit:
Yep the figures state costs recouped not return on investment

Tien · #89 05-30-2007, 07:15 PM

I know of a seller that did over 100 000+$ worth of renovations towards his home and practically made it into a model home.

Too bad the medium price range for that house was about 180 000$ and maximum he would be able to sell it is 210-220 000.

Too bad he lost it to the banks too.... That's a different story though.

TheMetetron · #90 05-30-2007, 07:24 PM

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there are many people getting a ROI > 100%.

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I hope you misspoke. Most people are getting a negative ROI. There are some upgrades in some areas that can be +EV, but the ROI is very, very miniscule and you would need to do some very good homework to make sure yours is one of those. I'm not saying you can't contract out work and make more than the costs, I'm just saying it is very uncommon and the returns are incredibly small if you can find them.