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Question for the Money Doctors

Question submitted on Aug 9, 2012.

Question

At what point would you consider home improvements to be an ''over-improvement''?
Dollars and cents wise.

Is there a rule of thumb to go by?

Answer

I have always been a fan of paying for things in cash and not borrowing money to get them.  This even goes for larger ticket items like home improvements. That being said, if you can't afford to pay for it in cash, save up more money until you can. 

Whether you are borrowing the money to make the improvements or paying for the project in cash, the total cost depends on what you are improving.  Are you remodeling your kitchen or putting on an addition?  There is no rule of thumb but to keep yourself in check, consider getting quotes from 3 contractors to compare prices.   An experienced contractor may be able to give ideas on how to make your project great while keeping your budget in mind. 


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