Investing in Your Biggest Asset: Home Improvements that Pay Off
Owning a home represents many things: financial success, emotional security, achievement, family, comfort. Our homes are where we return after work, relax with loved ones and sleep safely. Often, though, our home isn’t exactly what we’d like, and we enter the realm of home improvement projects.
Home improvements can run the gamut from repainting a wall at the cost of a gallon of paint to remodeling a kitchen to the tune of tens of thousands of dollars. Deciding which home improvements to take on can depend on a number of factors.
If you’re convinced that you’ll be living in your home for the rest of your life – if you’re in your “forever home” – then your first consideration should be your personal preferences. Go ahead and paint the ceiling black and put in the 70s-era mirror squares. Your only limiting factor is budget, and how permanent you want the changes to be.
However, if there’s a chance that you’ll want to sell your home at some point, whether to upsize, downsize or upgrade, or to relocate for work or family, it makes more sense to tailor your home improvements to the eventual resale of your house. Simply put, some renovations recoup costs better than others.
For easy changes like wall color, which you can repaint at sale time, go with your personal tastes. But for more expensive improvements, keep in mind what the market will want and value. According to U.S. News and World Report, here are the home improvements that will earn back the most of your investment.
1. Entry door replacement: Recoup 96.6 percent of your investment in this curb-appeal essential.
2. Deck addition (wood): Recoup 87.4 percent by adding outdoor living space.
3. Attic bedroom: Recoup 84.3 percent of your investment with more room for family and friends.
4. Garage door replacement: Recoup 83.7 percent with this functional and aesthetic exterior feature.
5. Minor kitchen remodel: Recoup 82.7 percent of your investment in this heart of the home. Keep in mind that a major remodel can cost up to 25 percent of your home’s value, so spend wisely.
Remember that enjoying your home is important, too, so undertake improvements that will net you pleasure as well as financial return. And keep in mind that, whether you’re looking to update your home for yourself or for sale, a Home Equity Line of Credit or Home Equity Loan can help provide the money you need to complete your projects – letting you use the equity you’ve built in your home to improve it.
For more information about On Tap Credit Union’s home equity solutions, call us at 303.279.6414 or visit a branch today.