Purchasing a home represents a significant financial responsibility. While most buyers know that they will not find a property with everything on their wish list, few take the time to consider the benefits of investing in a major remodel for a new property.
Purchasing a home that needs some work can seem like a daunting task, but it can actually be financially beneficial to begin remodeling your new residence. Here are three ways that investing in a home remodel now can actually pay off in the immediate future.
When you invest in a piece of real estate, you want your property to grow in value over time. Building equity ensures that you will be able to sell your home for more than you paid, helping to add profit to any future real estate transactions.
Building equity also provides you with the opportunity to access a line of credit known as a home equity loan. This loan will provide you with the money you need to complete future remodel projects or pay for unexpected expenses. Investing in a home remodel is one of the easiest ways to build instant equity.
If you are hoping that your remodel will yield a high return, choose a project that will add instant value to your home. A kitchen remodel or the addition of a wooden deck can help increase your home’s appeal, while opening up your home’s floor plan can create the illusion of more space. These home remodels will pay off by adding value to your property.
2. Energy Efficiency
If you want to keep the costs associated with owning a home as low as possible, invest in a remodel project that improves the energy efficiency of your living space.
Purchasing energy-efficient appliances, installing smart lighting, or upgrading the heating and cooling systems in your new home might seem like costly tasks, but the completion of these remodel projects could significantly reduce your utility costs each month.
Reduced energy expenses can save you a lot of money over time, making the cost of investing in energy efficient remodels worthwhile. Focusing on energy efficiency might not drastically alter the appearance of your home, but it can really help your home remodel pay off in the long run.
3. Reduced Insurance Costs
Homeowners are required to pay for insurance each month. Insurance companies take into account the level of risk your home presents when determining your monthly policy premium.
If you want to reduce your home insurance costs over time, invest in specific remodeling projects. Updating the pipes within your home can help to reduce the risk of flooding. Installing a security system can help prevent break-ins or theft. The addition of a new roof can significantly lower the risk of water damage within your home.
Visit with your insurance agent to determine which types of home remodel projects might be beneficial in lowering your monthly insurance premiums in the future.
If you are worried about the costs associated with completing a home remodel, weigh these costs against the financial benefits a completed remodel project can provide.
Opting to update the appearance of your home could increase its equity value, while installing energy-efficient appliances can help you reduce your monthly utility costs. Also, making your home more structurally sound through remodeling can keep insurance costs low. These types of projects can actually pay for themselves over time, making them safe investments when it comes to improving your residence.
Be sure to consult with the experienced professionals at Sawhorse Designers & Builders to identify which home remodel projects will pay off most for your property over time.