Spending Money to Improve Your House
Congratulations! If you are reading this, you most likely have recently qualified for a home improvement loan, or you are in the process of obtaining one.
While securing finance is a significant win, it may also become a bit overwhelming to decide what home improvement projects to focus on. You probably have a ton of ideas in mind of repairs and remodeling for your home; however, some projects are better investments than others. Here are some things to take into consideration to get the most out of your money when getting a home improvement loan.
Do You Plan to Live in Your Home, or Are You Planning on Selling It Soon?
One major factor when deciding on your home improvement projects is who will be taking advantage of these projects shortly. Of course, if you are planning on staying in your home for many more years to come, you may have in mind that spectacular master suite or that sunroom that you have always dreamt about – and these could be justified splurges.
However, if you are unsure of whether you will be moving soon, these are probably not the best projects to invest in. Always keep this element in mind before making any drastic or over the top improvements to your home.
Here are some worthwhile projects to consider when selling. It doesn’t make sense to waste your finances on improvements that have very little return. Keep reading, and you’ll also find some considerations on other home improvement projects.
Upgrading Your Roof
Not only is having a good roof crucial in maintaining your attic and living space safe, dry, and secure, but roof condition also affects your insurance costs and probabilities of selling your home in the future. Homeowners insurance agents often base their premiums on your roof’s age/condition, and homebuyers’ first question usually involves this point too. How to know if you need to upgrade your roof? Along with the excellent advice from Maximum Real Estate Exposure, here are some signs to consider:
- Your roof was placed 20-25 years ago
- Water is leaking in some areas
- Shingles are cracked or damaged
- There is mold in your home
If you do decide to invest in a new roof, it’s easy to feel overwhelmed about the cost and the process of finding the right roofers. Just keep in mind these critical topics to research about: materials, styles, and warranties. Then, simply weigh out the benefits of each one for your home in a realistic manner – you may not want to invest in a product with a lifetime guarantee if you are planning on selling soon, for example.
Siding replacement is a great way to improve your home’s appearance, character, and value. You may be considering replacing your current siding due to moisture damage, for example, or simply to give your home an aesthetic boost.
Whatever your motivation may be, because it’s such a key element to your home, it’s essential to choose the material that better works for your home.
Whether it’s vinyl, metal, wood, or fiber-cement, you definitely want to consider the speed of installation, replacement cycles, guarantees, resistance to certain climatic factors, and costs. A vinyl replacement may be cheaper, for instance, but a fiber-cement siding may give you a higher return on your investment when selling.
Go for a Bathroom Addition or Remodel
A bathroom addition or remodel is undoubtedly one that will pay off if you are looking for a return on your investment. Many older large homes lack an adequate number of bathrooms, and even tiny efficiency homes have the space to create an extra bathroom (or half bath); you just have to get creative!
Take a look around for any extra rooms or underused spaces, like closets or even an area under the stairs. Keep in mind that whether it’s a remodel or an addition, a bathroom project does not have to be a luxury investment. Like for any project, the cost largely depends on the types of accessories and additions you choose. If you are going for a remodel, for example, instead of replacing the whole toilet, you could simply replace the toilet seat and lid and give your bathroom a fresh new look without spending a whole lot.
Don’t Invest in a Deluxe Kitchen
Going for a fancy deluxe kitchen may sound appealing when considering improvement projects for your home, especially since most people consider it to be the heart of their home. Nevertheless, it’s better not to go overboard.
You should not go for extremely trendy materials or designs, or ones that don’t go with the style of the rest of the house. Stylish designs may look good today, but they may date the kitchen down the line, and an over the top kitchen in a historic home or neighborhood may keep potential buyers away in the future.
Good lighting, energy-efficient appliances, and ample storage are resources that contribute meaningfully to a home’s value and to keep in mind when planning to remodel your kitchen. Think about spending some money on fashionable kitchen accessories as well.
Reinventing Your Garage
If you are planning on transforming your garage, you must keep in mind whether it’s worth it to lose one of your home’s most valuable features. You may not need the parking space, but most buyers will prefer a house with a garage. This is why it’s a great idea to make your garage a dual-purpose area without making any substantial permanent change to it.
Small changes, like upgrading the flooring, or adding customized shelves and cabinets, can help you create a comfortable area for different purposes. However, if you are planning on completely reinventing your garage, there are fantastic ideas out there on how to make the most out of this new space, such as a garage gym to help you get fit or a game room to spend your free time with family and friends. The possibilities are endless!
Final Thoughts on Making Smart Home Improvements
Whether you are planning on staying put for many years to come or selling soon for a profit, you have many options to invest your home improvement loan wisely. Don’t hesitate to consult both a contractor a real estate professional; they will both give you real insights on the value of any home improvement that you may be thinking about.
But don’t forget those home improvements are about making your dreams real as well, so there’s no right and wrong here! Each home improvement project is as unique as its homeowner!
Other Home Improvement Resources Worth Reading
- Smart renovations to maximize value – do you know some of the most prudent remodeling projects you can do around your home? Find out in this excellent resource on work that has an excellent payback. Don’t get caught putting money in all the wrong places before you sell.
- Home sale preparation tips that pay off – when selling a home, there are certain things you can do that will have a high return on investment. Some of these things are not that much money, yet will have a dramatic impact of making your property sell quicker and for money. Take a look and find out what makes a difference.
Use these home improvement articles to make sound decisions before selling your home.
About the author: The above article on how to get your home improvement loan to pay off was written by Linsey Knerl. Linsey is a personal finance expert, author, public speaker, and member of the ASJA. She writes for Upstart and has a passion for helping consumers and small business owners do more with their resources through awareness of the latest financial services