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wants to consider listing a home that is outdated, taking the financial hit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.