How can you make a greater, immediate return-on-investment (ROI) for an ADA compliant Master Suite home room addition to your home? What is an excellent way to justify the expense? How can you keep more money in your pocket and make the expense work for you in the long run? I will try to answer these questions, and more, by using the numbers from the Cost vs. Value Master Suite addition
With the latest housing bubble burst and the decline in home values, many home improvement projects took a hit on the ROI. According to the 2009 Cost vs. Value report, a Master suite addition with a cost of $109,483 and a resale value of $61,846 has an average ROI of 56.5%. That’s not very good from an investment point of view.
At the same time, many baby boomers are at, or approaching the age and time where nursing homes and assisted living environments are becoming a viable option. It is common for the children of these baby boomers to make this decision. This is a big booming business. These costs are steadily going up. According to The 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs:
- National average rates for a private room in a nursing home increased by 3.3% from $212 daily or $77,380 annually in 2008, to $219 daily or $79,935 annually in 2009. National average rates for a semi-private room in a nursing home increased by 3.7% from $191 daily or $69,715 annually in 2008, to $198 daily or $72,270 annually in 2009. National average assisted living base rates increased by 3.3%, from $3,031 monthly or $36,372 annually in 2008, to $3,131 monthly or $37,572 annually in 2009.
- National average assisted living base rates increased by 3.3%, from $3,031 monthly or $36,372 annually in 2008, to $3,131 monthly or $37,572 annually in 2009
- The 2009 national average hourly rate for home health aides increased by 5% from $20 in 2008 to $21 in 2009. The national average hourly rate for homemaker/companions increased by 5.6% from $18 in 2008 to $19 in 2009.
- Adult day services national average daily rates increased by 4.7% from $64 in 2008 to $67 in 2009
That’s an average of $77,380 a year or $212 a day for a private room. This yearly cost is greater than the average resale value of the master suite addition with no return on investment. Your actual out-of-pocket expenses will vary according to the type and scope of insurance you may or may not have.
If even for only a few years, it makes more monetary sense, short and long-term, to invest the money you would pay to a nursing home into an addition to your own home. To be more specific: a full ADA compliant Master Suite home room addition. What are the values of the loved one being at home with the family? Priceless.
What is a Master suite home room addition? It’s an addition that has a large walk in closet, full master bathroom and a bedroom. It is generally considered a separate wing to the rest of the house, yet easily accessible.
If you have an aging and/or handicapped family member and are considering a nursing home or assisted living, make your money work for you and get the most bang for the buck. Consider a home addition that will function for your family member and give you the best return-on-investment (ROI). After all, it is an investment, either to your own home, self and family or a nursing home and their investors.
We at Freedom Builders & Remodelers will be happy to assist you in designing, planning and building your home addition. Contact us at 815-985-0310 to set up a consultation or estimate.