Purchasing a home may be the largest and most likely financial risk an individual or group can take. In addition to requiring a large down payment, owning a home requires a stable income for mortgage payments as well as repairs or improvements. Such an investment often serves as a source of capital, but poor decisions can turn it into a financial nightmare. Acquiring a $150,000 dollar loan to improve a real estate property does not guarantee a solid return on investment without judicious strategy and execution. Before doing any renovation, I would create a detailed budget worksheet with leeway to prepare for unexpected costs. Throughout the renovation project, I would keep all receipts and update the spreadsheet regularly. While it is important to strictly adhere to the budget plan, the worksheet should also be somewhat dynamic, so that any deviations can be incorporated into the budget and managed rather than being seen as a reason to ignore the plan. Before considering the aesthetics of the property plan, I would order a thorough inspection. Buyers may be attracted to a home for its visual appeal, but may choose to walk away before closing if there are serious health or safety concerns with the home, such as mold growth and dangerous electrical wiring. Additionally, while creativity may lend itself to prudence regarding the property's appearance, structural repairs often come with high and mostly fixed prices. To make good, cost-effective decisions, I would order more inspections to look for convergence in reporting and ask for quotes from many companies if repairs are contracted out. Once the structural integrity of the home is confirmed or established, ... .... middle of paper ......, in addition to tidying up the landscaping and planting flowers and small bushes, they can liven up the exterior of a home and improve its charm. Any extra money in the budget can be used to add magnetic touches, like a covered patio or outdoor kitchen. As with the interior of the home, it's important to research other homes in the area and talk to local real estate agents to find an addition that is most likely to generate a return. Owning a home is a rewarding experience; as you reap the benefits of housing, mortgage payments and other personal investments in the home build equity, at least in a healthy market. The objective value of such investments depends on the real estate market and the quality of investment decisions. Careful planning, prioritization and ingenuity can promise a good return on investments made in real estate.