When it comes to your home, there are lots of investments that you can make that could improve your home, lower your bills, or just give you peace of mind. Of course, when it comes to spending lots of money, the question that everyone asks is: ‘is it worth it?’. The answer depends on your situation and circumstances. Here are a few investments and home improvements you can consider as an investment - and why:
1) Getting a Home Warranty
The first investment you can make does not necessarily involve any improvements to your home. It’s actually a means of protecting what you’ve already got. If you are in a newly built home, you may already be protected by a builder’s warranty, but if you don’t have an existing warranty, then you should start your research. You can find plenty of advice online, like this home warranty guide, which can help you figure out what could work best for you.
As a general rule, you should always read the warranty carefully. There are lots of options, and not all of them cover everything you might think. If you do decide to go ahead with some of the home improvements mentioned below, or some other kind of home improvement, you can look for warranties that will protect those too. A warranty is a good investment to make if you choose the right one, as it can spare you from big up-front costs should something in your home need repairing.
2) Improvements for You
Some home improvements, like re-decorating a room with new wallpaper or paint, can be made to satisfy your own tastes and needs. If you remodel a perfectly functioning kitchen to something more luxurious, it can’t really be considered an investment, but if it makes you happy, then it can be worth spending money on.
There are some improvements that you can make that can benefit you and be considered an investment, such as remodeling an attic or basement because you need the extra living space. This can be considered an improvement, benefitting you and your family and how you live, but also as an investment too. Remodeling an attic or basement is an improvement to your home that buyers may also appreciate and, therefore, it could make your property worth more when it comes to selling in the future. If you can enjoy the benefits of the improvement, that can often make up for the overall costs and make any gaps in cost and profit seem more worth it.
Before making any improvement, consider whether you are doing it for yourself or to make your home more saleable? You might not make all the money you spend back, but if it makes your time spent in the house more pleasant and improves your way of living, it could be worth the investment for your own enjoyment.
3) Long-Term Investments
Home improvements to also consider when you plan on spending at least several more years in your home include things that pay you back slowly. These usually come in the form of energy efficiency improvements, such as insulation, double glazed windows, and more efficient appliances.
Replacing doors and windows can be very costly upfront but will make a difference to your energy bills in the long run, so you will eventually make some of the money back, though not necessarily all of it unless you stay there for 20+ years. It will make your property value increase, though, but once again, not necessarily enough to cover all the costs.
If you consider the savings you make to your bills, as well as the improvement it makes to your property value, this is an investment worth making if you plan on staying in your home for a few years first before selling.
4) Home Improvements to Make Before Selling
The best investments to make are the ones that earn you back all of your money, plus profit. Home improvements can all be considered investments, but it can be difficult to determine which ones are worth the cost. When it comes to selling your house, there are lots of home improvements that will make your home more attractive to buyers, but the amount of value they add to your home might not be as much as the money you spent on making the improvements.
Kitchens and bathrooms are big areas that can be improved before selling your home but be careful about what you spend and the items you choose. Replacing the sink, toilet, and bath with a basic but new model will instantly make the bathroom more attractive. Simple and basic is actually better, as most people want ‘clean and fresh’ and will likely update the rooms themselves to reflect their own styles.
All home improvements can be considered an investment, but for some, the payoff is a more pleasant lifestyle rather than a more sellable home. It is up to you to determine whether the improvement is worth the investment or not.