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Up the Value of Your Home -- Try a Home Improvement Loan
By Jonathan Haeber
CMR Columnist
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The glory days of the housing boom are over. Mr. Bernanke -- our illustrious Federal Reserve Chairman -- has instituted a new series of rate increases; housing prices have slowed in appreciation; and most major media outlets report that we are definitely in a buyer's market.
You may be thinking you're in a pickle. Maybe you planned on selling your home at a much higher price than it would command in the market. You still have one "get out of jail free" card, if you're intent on selling your home: You can up the value with a smart home improvement loan investment.
Home Improvement Loans Could Yield Profits
According to a 2004 survey by Home Remodeling Magazine, there are a number of improvements that will garner a 90% or better return on investment (ROI). The top winner is a kitchen remodel. For some areas, this remodel will recoup your loss -- and then some. Adding things such as a wine cooler, stainless steel appliances, tile, and granite countertops will surely be a boon to your resale value. Coming in a close 2nd was a home siding replacement (vinyl siding can do wonders to a home price). In 3rd, was a bathroom remodel.
However, these improvements cost money. For a kitchen, count on spending about 15,000 dollars. For siding, toss in another 7,000 dollars; and for your bathroom, count on spending at least 7-9,000 dollars. The best way to fund these projects, if you lack the cash, is a home equity mortgage loan. You can write off interest payments on your taxes.
A buyer's market means that the buyer dictates what they're paying for your home, more than ever. Remodels give them a good reason to pay what you expect for your home.
Source
Bankrate: Top 5 Projects to Boost Your Home's Value
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages.
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