I just read an article about using your home as a 401K and they really had some good points. When you invest in your home and keep it up to date, it's just like money in the bank. Many improvements will get you back more than what you invested and others will help your house show better and sell quicker so it's like getting a big discount on the work. Your home is one of your biggest investments and historically, they go up in value over the years so it's definately a good place to bank your money.
Especially when you have an interest only loan - you aren't paying on the principal, but if you are adding value to the house, you are adding equity.
For example, getting new siding on your house. Vinyl siding or Hardie Plank will add a lot of curb appeal when you use it to replace that old aluminum siding. When you crunch the numbers, adding siding increases the value of your house and you get around an 88% return on your investment, so in actual dollars, it is only costing you about 12% of the price of the job.
Remodeling your bathrooms and kitchens - great investment. These are the most important romes of your house when it comes to selling and also when it comes to enjoying your house. We've run across many families who, after remodeling their rooms and getting ready to sell, remember why they bought their house in the first place and how much they love it and end up staying!
Comments(0)