Comparing Values:Your car vs your home
I wanted to share something I found recently while researching the current value of my truck. I happen to stumble upon an article dealing with auto depreciation. The article on www.Edmunds.com had a great infographic titled http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html
(see photo at right, click for FULL graphic thru 5 yrs and full article. Source: Edmunds.com)
While Gettum Associates is a local, Indianapolis area remodel contractor, the information on car depreciation is relevant, so bear with me. While we would love to complete projects for every person we meet, we know this is unrealistic. There are a variety of reasons why we don't win every job, but the biggest reason is cost. For some, it's a simple matter of budget. For others, the price quoted is believed to be "too high". So, how is this relevant to new car values and depreciation?
Click on the graphic to the left or go to http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html and take a look. While perception is reality for many, here is a staggering fact that may rearrange your perspective:
While we do not hesitate to spend $20, $30 or $40 thousand dollars on a car or SUV, many do not realize that we lose about about 37% of what we pay the dealer after 5 years! Ouch!
In comparison, your home has historically been one of the most stable assets you can invest your money in. In fact, when it's done by a true professional, an investment in your home increases the value of your home AND your daily enjoyment of it.
While we can explain to our clients WHY home improvement prices can be high (quality materials and installation, service after the sale, etc,), ultimately we understand everyone has different values and everyone has a budget they must go by.
But these are facts, and something to keep in mind next time you buy a vehicle! If your considering an investment in your home, give us a call. We can help you discuss your options. In the end, it may make sense to move to a new home. For others, who like their neighborhood, neighbors, schools, etc it may make sense to stay put and modify your home to suit your needs. Give us a call, we are happy to help!