Most people anticipate their yearly tax refund with a preconceived notion of exactly what they’d like to do with it. You’re either on team investment or team enjoyment.
Here’s how you can do both.
Invest your tax refund in your home. Always wanted to freshen up that dingy exterior? Appliances out of date? Maybe you’d love to have new countertops. Updated carpeting can make a huge difference in both aesthetics and air quality. Programmable or smart thermostats are not only a great investment now but will continue saving you money for years to come (check with your energy supplier for rebate offers too!). Energy efficient updates are becoming more popular every day. The possibilities are endless but you need to do a little planning.
Make sure the investment you make is one that will reap benefits in the form of increased home value. MoneyCrashers list of the worst remodeling projects includes:
- Luxury Bathroom – Remodel your bathroom with neighborhood home values in mind.
- New Swimming Pool – Only expect to recoup around $10,000 (for an inground pool) when the time comes to sell your home.
- Built-Ins – including entertainment centers, aquariums, book cases, fireplace surrounds.
- Garage Addition – This specifically concerns adding to existing garage space.
- High-End Landscaping – Again, consider homes values in your community.
- Home Theater
If you’re thinking of selling your home soon, before you put it on the market talk with your realtor. They can advise you on the best investments in your home, to get it sold fast and at the highest price.
Tax Refund on the Way? Invest It in Your Home
If you’re fortunate enough to have a nice windfall coming your way in the form of a tax refund, there are plenty of ways you c can spend that money, from vacations to a shopping spree.
But a smarter idea might be to multiply those dollars by investing them in a home improvement project, one that will not only enhance your living space and lifestyle, but also increase the value of your home.
According to Remodeling magazine’s 2019 Cost vs. Value Report, the five projects with the greatest return on investment (ROI) in the mid-range cost category are:
Manufactured Stone Veneer – 94.9 percent ROI
Minor Kitchen Remodel – 80.5 percent ROI
Deck Addition (Wood) – 75.6 percent ROI
Siding Replacement – 75.6 percent ROI
Entry Door Replacement (Steel) – 74.9 percent ROI
If your refund isn’t sizeable enough to fund this type of large-scale remodel, a smaller improvement can go a long way in terms of adding value to your home. Consider:
- An exterior paint job. Not only will this protect your home from the elements, it will also work wonders in terms of modernizing your home and adding curb appeal.
- A landscaping update. Need a couple of trees removed—or added—or a manicured garden bed? Put your refund toward planting season, and watch your dollars grow.
- A smart upgrade. Smart home technology—like thermostats, cameras, lighting, and more—is a great way to instantly upgrade your home’s value
- A kitchen or bath enhancement. If you can’t afford to remodel the entire kitchen or bathroom, tackle one key component instead. Replace the countertops, add new cabinets or invest in new fixtures or appliances. Upgrading one feature will add value to the entire room.
Treating yourself with your tax refund is tempting, but treating your home to an upgrade will pay dividends long term.
Reprinted with permission from RISMedia. ©2019. All rights reserved.
For more information, Call or Text: 602-999-0952
eMail: golfarizona@cox.net
Bill Salvatore / Arizona Elite Properties
Your Valley Property Team
Residential Sales, Marketing, and Property Management
Founder: AZVHV Arizona Veterans Helping Veterans
Member: Heroes Home Advantage
Recipient: East Valley Tribune’s: Best Gilbert Realtor
