Homeowners need to be well informed about what home improvements increase the value of their homes and which are just done for enjoyment, not necessarily to increase the value of the home. A $40,000 pool and stone fireplace addition to your backyard may only give you a $15,000 increase in value. You may decide to build the outdoor entertainment area because you and your kids will enjoy years of family time there. For this reason, the investment will be well worth it to you. It can be problematic, however, if you think you are adding $40,000 of value. If enough years go by, rising property prices and reduction in the principal on your mortgage, will eventually give you equity. But it would be a grave mistake to think that this kind of improvement would give you equity in the short run.Consider how long you will keep your house and consult with a local Realtor about the current value of your home. Do the math and go realistically into a major home improvement.