Auto-Loan-Financing.com has scoured the web to find the best financial articles to help peole repair bad credit or fix their
personal finances. Each article is written by leading finance or automotive industry experts.
When preparing to embark on a home improvement project, here are a few simple questions to ask yourself to help ensure that the home improvement project is a good investment:
* Am I improving to stay or move? -- According to the AHF, it costs approximately 10 percent of a home’s current value to sell and move. If you enjoy your neighborhood and school system, it may be better to reinvest that 10 percent into home improvements that will enhance your lifestyle versus moving.
If moving is a must, then simplicity will be key. A fresh coat of paint can have the biggest impact on the resale value of your property, because it is a less-expensive way to make the property visually appealing.
* Will my desired home improvement increase the value of my home? -- Certain kinds of improvements will increase the value of your home, others may not. It is important to determine whether this is the case before you invest the money. Valuable improvements can include additions to living space or improvements to bedrooms, bathrooms and kitchens, such as new windows, fixtures, etc. Amenities, such as swimming pools and tennis courts, do not add as much to the value of a home.
* How do I determine how much money to invest in home improvements? -- Whether you’re planning to stay or move, you should try to avoid over-improving. If you invest “too much” on improvements, you might make your home more valuable than the value of the neighborhood. Remember the old adage, “Buy the worst home in the best neighborhood rather than the best home in the worst neighborhood.” For example, if you live in a neighborhood of $100,000 to $150,000 homes, investing $200,000 into the house may mean you will not recover all or part of the cost of the improvements if you intend to sell it.
However, don’t let the fear of over improving discourage you from moving forward with a project. Depending on the scope of your home improvement project, there are a variety of products that are beautiful and cost-effective to fit any budget. Just remember, you home’s value should be no more than 20 percent above the average.
* What if my home improvement project costs more than I am initially able to invest? -- Recent changes in tax laws have opened up home equity for a variety of uses, including home improvement. Today, home improvement can often be financed at low rates and over a long term by simply taking advantage of the current low mortgage interest rates. If mortgage rates are low, cash out mortgage refinancing may be the best way to refinance the remainder of your home improvement project.
* Will capital improvements increase the tax basis of my home? -- Making improvements to your home may increase the tax basis. When selling a home, the gain is determined by subtracting your basis from the net proceeds. Be sure to save records of all capital improvements made to your home. Capital improvements do not include maintenance or repairs.
To learn more about investing in home improvement, contact your local financial advisor; the American Homeowners Foundation at
www.americanhomeowners.org, (800)489-7776 or the National Association of Homebuilders at www.nahb.org, (800)368-5242. To fine out
more about windows and doors, contact the Window and Door Manufacturers Association at www.wdma.com, or Pella Corporation at
www.pella.com, (888)84-PELLA.
Article content is copyrighted by their respective authors. Auto-Loan-Financing.com makes no claim to ownership of the
articles. The Articles provided are solely for educational and informational purposes and do not constitute legal or financial
advice. Files, source code, page layout, and design contained herein are the intellectual property of Auto-Loan-Financing.com
and may not be reproduced without the express written consent from Auto-Loan-Financing.com.
The Articles provided are solely for educational and informational purposes and do not constitute legal or financial advice to
erase, fix, or repair bad credit.
