Your thinking of adding a wood patio to make your house more attractive and increasing its living space? While you may need a new patio, it is probably not the only part of your home that needs renovations. The living room could be modernized and the basement could be better arranged for the children and you’re asking yourself what amount you could invest and where you should invest it to get the best return on your investment. After all, most renovations have the benefit of increasing the value of your house, but if you don’t invest in the right place, or invest more than is necessary, you risk finding yourself at a loss.
Building a wooden patio is one of the best investments for resale
Return on investment of a wooden deck addition in 2014 – Source : Remodeling Magazine
Year after year, the construction of a wooden patio or deck is the renovation that best keeps its value. Statistics from the Remodeling Magazine show that since 2007, homeowners that added a patio also increased the value of their home by 80% to 90% of the cost of the wood patio.
As for a wood patio return on investment – or the value added to your residence by the renovation – it is also influenced by different factors:
Many factors influence the cost of a wood patio like its shape, its size, the materials used, if you integrate special elements such as lighting, tempered glass railing, a pergola, a gazebo, radiant heating, a hot tub or an outdoor kitchen.
Consider first that the return on investment of a renovation is not determined simply by the use that you make of it, but also by the use that other people, potential purchasers, will make of it. Here is a different and perhaps extreme example to illustrate the concept. You have three children who are relatively young, and you decide to transform a room in your house into a dream game-room, with a painted mural and a small interior play area, and of course an integrated puppet theatre! For you, this renovation added significant value, but if you decide to sell your home, this specialised room will probably be seen as a supplementary cost for the potential purchasers, who may not have children or have a different vision. It is the same thing for the construction of a wood patio.
Your patio should be constructed keeping in mind your needs, but also with a practical sense. Consider the region or the neighbourhood in which you live. Is it exposed to the sun most of the year? Are pools, hot tubs and exterior kitchens common in your neighbourhood? All these questions will help you determine the elements that will make the construction of your wood patio a great investment.
Also consider your residence, and make sure that your wood patio fits with its style and with its level in the real estate market. For example, it is common to expect a $15,000 deluxe outdoor kitchen in high-end homes, but if your residence is more like a first home, the investment in that kitchen may not bring you as much value as you had to spend, and your return on investment may be minimal.
This does not mean that you can’t add elements that you have always dreamed about during the construction of a patio, but only that you have to take into consideration your environment before spending thousands of dollars.
For a maximal return on investment, also consider the materials that you will use for the construction of your deck. Wooden decks are generally cheaper to build than composite decks, plus you will recuperate almost 90% of your investment compare to less than 75% for composite decks (if you spend $20,000 for the construction of your custom wooden patio, you will increase the value of your home by about $18,000). Remember also that just because you invested a lot of money you may not automatically receive a great return on investment. The return on investment depends on not only the money that you invested but also your environment and the manner in which potential purchasers perceive your home. The more they can see themselves living in your environment, the higher the chance that you can maximise your return on investment.
Finally, whether or not you are planning on selling your home, keep in mind that to ensure the success of your wood patio, it must naturally fit with your residence and its general environment, while also meeting your needs. After considering all the pro’s and con’s you may very well find that your new wood patio return on investment makes this renovation a quite attractive addition to your home, and not only for financial reasons.
References:
http://www.remodeling.hw.net/cost-vs-value/2014
http://www.moneysense.ca/2011/08/05/which-renos-add-value-and-which-dont