Prudent and Practical

A few months ago Kiplinger’s magazine talked about what you should do to improve your home in the recession.  It wasn’t that you get a large return for the specific improvement – it was that the price of the main material has gone down during this slow time.  So without further ado, here are the top remodels to do during a recession according to Kiplinger’s:

1. Replace the roof – According to Kiplinger’s the price of asphalt has been falling lately.  While researching this, another site states the opposite, that the cost of liquid asphalt has increased 90% in the past year.

2. Repave your driveway – The price of asphalt is apparently falling, but unbeknownst to Kiplinger’s may have increased.

3. Upgrade vinyl siding – The price of petroleum-based vinyl fluctuates with the oil prices.  Lower oil prices mean more affordable siding.

4. Add a deck – Kiplinger’s states that lumber costs have declined 5% over the past year.  Since the publication, the US Department of Labor, Producer Price Index has showed that lumber has dropped even more (6-7%) over the past year, meaning a 38% decrease since 2004.

5. Replace or add insulation – Prices are down 2% and are a reflection of the current housing slump.  In addition, you may qualify for a tax credit, which would help to defray the cost, too.

The funny thing is:  although the prices have gone down on construction costs, these projects are still very expensive, with insulation possibly being the cheapest.  We’re still talking $1000′s unless you do some of the work yourself.

D and I got new blown cellulose insulation when we moved into our home.  Even during the housing boom (early 2006), the insulation was decently priced.  We have looked into having the other projects done over the past couple years.  Even with prices dropping, we don’t want to spend all the money to get the “big ticket” projects done, especially since we’ve been thinking about moving for a while.  We met with a realtor last November who told us that it’s not worth it to spend the money to get a new driveway and siding installed – we’d need to live here at least another few years to see any kind of return on it.

• If you’re interested in the cost off fuel, asphalt, and steel, New York state’s DOT has compiled a list of prices from January 2006 through last month so you can see the fluctuations for yourself.  Construction Magazine has also compiled bi-monthly reports of Design Cost Data from metals to sheet rock and the construction materials in between.
  
• And a little lesson — before doing a major renovation, do your research.  The prices are fluctuating constantly with the economy.