Home Improvement Projects You Should Use Your Home Equity For
If you’re a homeowner and you want to remodel your house, you’re going to have to find a way to finance it. If your house values higher than what you owe on it, then you are in a great position to access the home equity line of credit or loans. You should, however, note that in home equity, your house acts as collateral, and you are putting it at risk by accessing the home equity loan. You also extend your mortgage repayment period. However, if you have the right strategy at hand, this risk should not deter you from taking on value-adding home improvements. Below is a detailed compilation of some of the home improvement projects that are worth using your home equity on.
For homeowners looking to increase the resale value of their homes, the kitchen is the best place to start. According to a survey, 80 percent of potential home buyers rank the kitchen as one of the most important home spaces. Using home equity to finance kitchen remodeling is one of the most effective and reasonable ways to use the funds. Buyers are more likely to pay more for modern kitchen appliances and features like granite countertops. You should, however, be careful not to go overboard with the remodeling. Another great reason to consider using your home equity for kitchen remodel is cutting on energy costs by switching to more energy-efficient appliances.
The bathroom is of the rooms where wear and tear are felt most. Due to the moisture, the bathroom tends to age faster than the rest of the house. It is prudent to consider remodeling your shower rooms from time to time to keep your home in shape. During the valuation of homes, one of the most important factors that realtors look out for is the bathroom condition. The bathroom is, therefore, a big influencer of the value attached to your house. Using home equity for a bathroom remodel is a wise decision to make.
Solar panels are a great way to cut electricity bills. For most businesses and homeowners, electricity bills make up a large chunk of their monthly expenses. You can reduce this energy cost or even eliminate electricity bills by adding solar panels to your house. Solar power is usually a great investment with an ROI of about 20 percent or more. Other great benefits that may justify using home equity include reducing the carbon footprint of your home and increasing its property value. Non-solar homes generally sell slower and at lower prices than homes equipped with solar panels.
Outdoor living is among the most popular home development trends today. Adding a deck to a home adds more space for social activities like hosting parties. Decks offer great space for people to gather and still have room to breathe. Unlike crowded rooms, decks are less claustrophobic and are easier and cheaper to clean or repair. A deck provides great advantages for social homeowners, such as adding value to their home, more functional space, and a new great aesthetic look for the house.
It goes without question that the roof is one of the most critical parts of a house. The general appeal of a home can be significantly severed by a roof that shows wear and tear. A well-maintained roof translates to better indoor temperatures and protection from external weather conditions. A worn-out roof leaves the house susceptible to damage by rain and wind. Using home equity for roof repair is an excellent call as it would ensure you curb further damage costs that would arise if the roof is left unattended to. A good looking and functional roof can help increase the value of your home.
Despite the possibility of recouping some of the investment made in adding extra rooms to your house, it can quickly spin off into a costly disaster. A wiser way of adding square footage to your home is to assign new utility to non-essential spaces. The garage is always an ample space to use as a gaming room or even as a second living room. The attic can be converted into a new extra bedroom. A good tip to follow is always to pay attention to what you or the home buyer would use the space for, before bringing in the hammers. You can also convert the basement into an extra living space for an aging relative or even an apartment for renting.
Installation of Energy Efficient Insulation
It costs more to maintain or live in a house that has not been modified to achieve energy efficiency. Home inspectors will always include outdated insulation or old doors that let in excess cold or heat in their reports. This will surely deter any potential buyers from considering purchasing the house. It is, therefore, vital that homeowners install modern energy-efficient insulation that will keep the energy costs minimal and attract more buyers to the property.
Upgrading to Energy Efficient Windows
To potential home buyers, the old single-pane windows come on as a major turn off. Energy efficiency is one of the most crucial home-buying factors today. As a homeowner, you can save as much as $500 annually by upgrading to energy-efficient windows. Installing energy-star rated windows comes with a 10 percent green energy tax credit.
Most new luxury home buyers have outdoor living spaces on the top of their checklists. Social homeowners would also benefit immensely by constructing an outdoor kitchen where they can barbecue and cook a steak with friends and family. Any grill master would greatly appreciate the luxury of not having to rush in and out of the house for utensils while cooking outside.
It is always wise to prioritize any home improvements that would add to the value of your home if you wanted to sell it. Whether or not to use home equity loans and home equity lines of credit for home improvement can be a hard decision to make due to the risk it carries. But with the right projects that have a good ROI, it can be one of the best investments to make.
Turn your house into your dream home with a new remodeling project. We can help make it happen! Contact us to schedule a free consultation.