Making Financial Headlines · Page 1
A Roof Deck Asks the Housing Market to Pay for the View
· New York time
A 63-year-old homeowner is considering spending $95,000 on a roof deck for a $500,000 home. The person reports a $2.3 million net worth and a remaining $295,000 balance on a 15-year mortgage, turning a home improvement question into an assessment of enjoyment, liquidity and resale value. The proposed deck would cost nearly a fifth of the home's stated value. That does not mean it would add the same amount to a future sale price. A buyer may value outdoor space differently from the person who chose the design and paid the contractor. The pleasure of using the deck and the financial return on building it are separate calculations. The mortgage balance is also part of the picture, although it does not settle the choice by itself. A household can have substantial net worth while still weighing how much cash a major project would use and what other needs that cash might serve. The project is a large purchase even if the owner can afford to consider it. The question is how much of the expense the homeowner is willing to treat as a purchase of outdoor living rather than a guaranteed investment return. The view may be priceless, but the contractor is unlikely to accept that as a payment method.
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