Building Equity With a Home Improvement Plan

Your home is typically the largest financial investment you’ll ever make. Over time, we expect the equity to increase through increasing property values and a decreasing mortgage balance. While homeowners recognize the need to maintain the home in good condition, one of the best ways to maximize your home equity is to create a plan for ongoing improvements and updates.

Often the interest in a remodeling project results from either an unexpected windfall or financing for a specific project but by planning for ongoing improvements, any homeowner can engage in updates to stay current with market trends.

As tastes change, homebuyers are attracted to new features. Outdoor kitchens, great room configurations, and home offices are just a few of the trends from the past few years. More timeless desires include more square feet, chef’s kitchens, and spacious bathrooms. To stay ahead of trends and build equity, smart homeowners should build a plan for continuous improvements.

In addition to developing a fund, build a road map for upgrades and enhancements. Consider the life span of major systems, such as the roof or HVAC systems; is end-of-life a good time to switch to solar energy? Kitchen styles change dramatically every 10 years on average. Start saving for a kitchen style change on the same schedule. Can be a complete remodel or simply a new countertop.

You may not plan to sell your home for years, but things change. No one wants to consider listing a home that is outdated, taking the financial hit that comes with it. Now is the time to plan for regular updates to build equity, and you’ll enjoy the benefits of the changes too

Affordable Style Updates To Do This Weekend

Just because your budget is feeling the pinch with rising food and energy costs doesn’t mean your style has to suffer. Ditch the big investment purchase ideas and try some simple updates that will change the look and feel of any room quickly and for a lot less than a new couch.

Five Affordable Updates to do this Weekend

1. DIY Pastel Art – Freshen up your room with pastels without the big investment. Take a simple canvas from the craft store, prime it with white paint and add color. Simple and sleek.

2. Industrial Retro Lighting – New light fixtures are a simple way to update a room. A local big box retailer will offer cost-effective versions of the latest trends.

3. White Sofa – No need to buy a new sofa when a fresh slipcover will do; bright, clean, and easy to change when the cooler months come.

4. Boho Accents – Mix up your style with some boho accents, such as a Turkish rug runner or kilim pillow.

5. Add Metallic Elements – Bold accents, such as a brass side table or shiny silver vase, can perk up a room and modernize your look. Watch for unusual shapes as well to add visual interest.

Soaring inflation has put many home improvement plans on hold but your style doesn’t need to stagnate. A few simple changes will give your spirits and your home a nice lift.

Home Issues That Shouldn’t Be Deal-Breakers – and a Few That Are!

Finding the right home can sometimes feel like hunting for a needle in a haystack. Unless you’re buying brand-new construction, every home has some drawbacks, whether it’s style or real maintenance issues. If you’re looking for your next home, understanding the difference between minor issues and true deal-breakers can help you evaluate your options and make the best possible choice.

Manageable Annoyances

• Cosmetic – All aesthetic concerns can be fixed – for a cost. The key is to understand the difficulty and level of effort or money involved. A dying lawn can be addressed with new sod. Is the kitchen dated? A new backsplash is relatively inexpensive. With some fresh paint and new lighting fixtures, you can easily brighten a room and make a small space seem more expansive.

• Healthy Homes – Many homes have older carpet, drapes, and other elements that can irritate allergies. Home air filtration systems are affordable and very effective in clearing the particulates out of the air. Replacing the attic insulation and cleaning the vents are easy and inexpensive ways to correct these situations.

Deal-Breakers

• Foundation Problems – Foundation cracks and other issues can be expensive or impossible to correct.

• Mold – While treatments for mold are available, they normally involve major demolition to open walls and flooring for access. Unless the sellers will correct the mold issue before closing, it’s better to reconsider on this one.

• Water Leaks – Signs of water damage or existing leaks could be a reason to search for a different home. Leaks and water issues will most likely bring you to the mold issue above. Classification: Public Classification: Public Buying a resale home almost always involves some kind of preexisting issue, but not all should be reasons to walk away. If the home you like has problems, before you move on, consider the costs involved to remedy the challenge.

Investment Rent or Flip

There are a wide variety of ways to invest in real estate; one can make money in any of these options, one can also lose their money. To be successful in real estate investing, it’s critical that you identify what skills you have and your tolerance for risk. Then choose a type of investment that works for you and repeat that model.

Investors can make great profits by both flipping properties as well as holding them as rentals. The difference really boils down to a few considerations. First, what kind of income are you seeking? Active or Passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort. Rental properties on the other hand offer passive long-term income which accumulates over time. Additionally the property value increases during this time. The downside is that one must invest time in property maintenance and tenant management.

The second concern is risk. Flipping a property is not traditional investing where one buys and holds an investment. Flipping is really speculation. When buying a flipper, one must carefully gauge the cost of refurbishment, remodeling and the cost of the holding time into the price valuation, then carefully market the home and realize the profit. Any number of variances can go wrong which could cause the value to drop and profits to reduce or even disappear, such as a delay in remodeling or a slow real estate market.

Both types of investments can bring nice profits. Determining what’s best for you and your talents is important in choosing the best option for your financial goals.