Proinsias O'MahonyStock markets do not like inflation, as investors have discovered to their cost this year, which raises the question: is housing sometimes a better bet? Stocks beat housing as a long-term investment but inflation certainly alters the equation, notes Ritholtz Wealth Management’s Ben Carlson.
However, investing in home renovations is a different matter. Carlson cites data from US housing research firm Zonda which looked at the cost and resale value of 22 different home projects, ranging from window replacements to minor and major kitchen remodels. In all 22 cases, the monetary value added to the house was less than the cost of the job. In most cases, owners would have recouped just 50 to 70 per cent of what they spent.
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