Posts Tagged ‘benefits of DIY’

Benefits of DIY Home Remodeling

Remodeling a house on your own is rewarding to say the least. The benefits of doing all the labor yourself can be self gratifying and save you lots of money. I chose to do as much home remodeling on my own as I could and was able to make a substantial profit once I sold the project home.

DIY vs The Contractor

By doing all the work yourself you are going to save money – period.
Lets say the cost to purchase a 1000 square foot home (needing a remodel) is $50k. Suppose the cost to remodel this home would require around $30k in materials. Typically you could expect to pay a contractor 125% of the material cost just in labor. Thats a whopping $37,500.00 just for the contractor labor. All together thats going to bring your total home remodeling cost up to $67,500.00! Now add in the orginal purchase price of $50K and that makes the total $117,500.00.

Typical Home Loan Financing

DIY Method Paying a Contractor
Home $50,000 $50,000
Material $30,000 $32,100 (assumed 7% markup)
Labor $0.00 $40,125
TOTALS $80,000 $122,225
30 yr Mortgage @ 4.0%
Monthly Payment
$381.93 $583.52
Total Money Spent $137,495.67 $210,067.61

The DIY savings are huge! A grand total savings of $72,571.94

Thats almost the original cost of the whole home remodeling project if you do all the work yourself!

 

Be the first to comment - What do you think?  Posted by muellerd - March 18, 2013 at 9:12 AM

Categories: Getting Started   Tags: , , ,