Thinking about making some home improvements? Here are just a few tips to help you stay focused and add the most value to your home.
Determining the purpose for your home improvement will help you decide which improvements are the most valuable. For example, if you want to make improvements to sell your home faster, certain upgrades will fare better than others. According to HGTV.com, doing a minor bathroom remodel will give you a 102% average return rate at resale. * Next up would be landscaping, then a minor kitchen remodel, followed by some exterior improvements (siding, paint, and an updated front entry). Make sure you talk with a realtor to find out which updates do best in your area market, too.
Even if you’re not doing improvements for the purpose of selling your home right now, it’s still just as important to figure out which improvements are beneficial for both now and for the future. If you want to expand your living space, think through your options for what makes the most financial sense. One of the cheapest options would be creating an outdoor space or room. You could also finish an unfinished portion of your home, like an attic, basement, or attached garage. This is a great way to add square footage without the expense of building an addition. Make sure to consider how long you plan to stay in the home to see which option would help you recoup the most money.
Financing a home improvement can be done in several different ways, but like most things in life, some paths are better than others. And, remember, the goal is to add more value to your home to make the financing worthwhile and smart. A Home Equity Loan is one of your best options. This allows you to borrow money based on the value of your home minus the amount you still owe. Home Equity Loans typically have low interest rates and the interest may be tax deductible. ** Try to stay away from high rate credit cards with minimum payments. The interest you end up paying may far outweigh any perks you get up front. For information on FORUM Home Equity Loans, click here
**Talk with your tax advisor about your specific situation.
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Categories: Finances, Homeownership