Let’s get this out of the way….Vacations are absolutely wonderful. There’s nothing like getting away for a week or two every year. However, therein lies two problems:
- You have to go away to get away. With Covid concerns and restrictions, getting away is not easy or hassle free, like it typically is in “normal” years; and
- Vacations only last for a week or two. Working for 50 weeks, for 2 measly weeks of R&R, doesn’t seem like the fairest of exchanges.
The Solution: Upgrade your outdoor living space so your home can provide the “getaway” you used to only be able to get from going somewhere else.
Imagine your outdoors now having a covered (and possibly enclosed) space where you can cook, eat, read, watch tv, entertain, be on the computer, play games or just plain relax. The rooms can be done in a climate controlled way, so you and your guests are completely comfortable (and free of the bugs that can be a nuisance.)
So how do you justify the expense of adding a covered patio or screen room/sunroom?
The answer lies in those vacation dollars. Many families today are taking what they would spend on a short-term holiday and instead investing it into having a long-term backyard vacation oasis.
Of course in a tight economic environment with substantial unemployment, not every family has the disposable finances necessary to splurge on a family retreat. Having said that, lots of families have found the “stay-cation” strategy not only affordable, but a way to enhance their family’s overall lifestyle.
Let’s look at the economics.
A typical week long resort/Disney type vacation, for a family of 4, can easily cost $8,000-$10,000. Double that – $16,000 – $20,000 – for two weeks of annual getaways.
Compare that to these average, entry level, home addition prices:
- Patio Cover: $5,000
- Screen Room: $10,000
- Glass Sunroom: $20,000
Of course prices will vary based on room size and the quality of materials you select, but these are the general basics.
Reducing required out of pocket expenses
The above prices don’t take into account the finance options that are available which can replace some/all of the required out of pocket funds with modest monthly payments. Here’s what a 6.99% finance program looks like on a monthly payment basis:
Finance Amount Monthly Payment
$5,000 $98.98
$10,000 $197.96
$15,000 $296.95
$20,000 $395.93
Your Home’s New Market Value: The fun investment that pays for itself
Perhaps the best part of investing vacation funds into adding on to your home is that it provides an instant return by increasing the market value of your dwelling. Research has shown a sunroom will typically increase your home value 4-6%. Here’s what that return will look like, in hard dollars, based on your home’s current market value:
Current Home Value Home Value Increase
$250,000 $10,000-$15,000
$300,000 $12,000-$18,000
$400,000 $16,000-$24,000
$500,000 $20,000-$30,000
$750,000 $30,000-$45,000
$1,000,000 $40,000-$60,000
It’s not difficult to offset some, if not all, of the expense with the increased funds you’ll receive when you sell your home.
The main point here is that if you mindfully plan your “home getaway,” you can recoup the expense multiple ways (vacation dollars and increase in home value) so you and your family can have a fun “holiday” whenever you want.
