June 2009

Seven Home Improvement Projects with Potential "Pay-Back Power"

Dear Ginger Donohoe,

Is it time to "invest" in your living space?  Do-it-yourself home improvement projects have the potential to turn your hard work into greater equity. 
 
If you're putting your house on the market anytime soon, check out this calculator to learn where the biggest pay-backs are.

Anyone - whether you own or rent - can make simple changes to your living space that won't bust your budget.

Clean and De-clutter It
Come home to a clean, well-organized home.  Just a little time and some basic cleaning supplies can magically make over your home. Follow these recommended steps.

This can pay you back in several ways.  Renters increase the odds of getting your full deposit back when it's time to move.  Home sellers benefit from showing potential buyers your total square footage.

Financially, tax itemizers can donate gently used items for a future deduction.  Or, holding a garage sale can help clear up space and generate cash.

Audit It
Lower the high cost of home energy consumption by tackling trouble spots that waste dollars.  A home energy audit can point out heating and cooling problems and offer simple fixes to save you money.

The federal government allows you up to $1,500 in tax credits as an incentive to boost your energy efficiency.  Plus, many local utilities offer rebates for customers buying energy efficient appliances.  Use this "rebate finder" to see what offers are available in your area.

Paint It
One of the fastest, least expensive ways to "dress up" a drab house comes in a gallon container.  A fresh coat of paint welcomes visitors - and potential buyers - alike.  Plus, it's surprisingly affordable.  Estimate the cost of a fresh coat of paint.   

Choose colors that reflect your personality and style.  But go with neutral colors when you're getting ready to sell.

Floor It
Another way to spruce up your home is right under your feet.  Home improvement expert, Danny Lipford, offers flooring solutions for your home.  Here are his suggestions to help you properly clean, maintain and repair your floors.

Lighten and Brighten It
Create the illusion of more space by exchanging dark and heavy window treatments with lighter materials that let in more light.  Changing lighting fixtures is also a simple way to update any room and enhance your design.

Remodel It
Updating a kitchen, bath, or other room in the house can be a big undertaking.  This online tool provides design ideas and demonstrates how these changes to floors, ceilings, cabinets, and wall colors might look.

Once you have an idea of the size and scope of your project, calculate the approximate price tag.  If your wallet isn't as big as your remodeling wish list, you might be able to tap into your home's equity to help fund these changes. 

But make sure you have all of the facts before you decide.

Contract It?
Do-it-yourself isn't for everyone.  If you're not confident in your home improvement skills, consider using a contractor.  Before you sign a contract or pay a deposit, do your homework!

Fall in Love With Your Home...All Over Again
Remember the first time you walked into your home?   

Even if it was "love at first sight" you probably had all kinds of exciting and creative ideas about the changes you could do to make it truly yours.  Channel your creativity and see the full potential of your space whether you're staying or selling.  Either way - it can be a great investment and save you money over the long term.

Sincerely,

The Principal Financial Group^®

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