Making the Most of a HELOC Loan
Let’s first start by answering the question I know many of you are asking… What exactly is a HELOC? Well, it’s a specialized type of loan known as a home equity lines of credit. Although they are considered to be a type of second mortgage, HELOCs work pretty much like a credit card: the amount of funds you have available is set, and you pay interest only on what you use. You can then pay back the money you borrowed and let the funds sit until you’re ready to use them again.
The recent gain in home prices has had the unexpected effect of causing these loans to have a resurgence, and along with this has come an increase in spending on home renovations. But which renovations will increase your home’s worth in the long run, and which are a waste of funds?
Top Home Repairs and Improvements
If you’ve decided to start making updates and changes to your home, you should carefully consider where you’re going to spend your money. Whether you’re making some updates in preparation for putting your home on the market or planning on staying in your home for the foreseeable future, it is important to know that certain home improvements have a greater return on your investment than others. According to HGTV and Yahoo!, here are the top home improvements to add value to your home.
Bathroom Remodeling.
Don’t rip out your entire bathroom, but instead, focus on minor improvements such as replacing old caulking or aged shower doors and repainting could net you more than 100% of your costs. On the other hand if you need a more major renovation where you expand the room, add storage, and install luxury fixtures, you will still recoup about 93% of your expenditures.
Renovated Kitchen.
Don’t go crazy with this one, either. Forget about trying for a whole new floor plan; instead, replace old appliances, upgrade the countertops, run some recessed lighting, and resurface [rather than replace] old wood doors and drawers.
Attic Conversion.
This was a popular trend in 2013, and while it won’t recoup 100% of the cost you put into it, converting an attic into an additional bedroom makes for a great selling point and may entice even more buyers to bid on your home.
Outdoors and Downstairs.
Adding a deck or patio brings you back about 90% of your costs, and finishing a basement can do the same. Make sure to remember that outdoor improvements can have a big impact on homebuyers as a first impression and can be fairly easy, while turning a basement into an entertainment area can end up being quite costly.
Weatherproofing.
Although you may not get the cash value back that you put into a new roof or windows, while you’re in the home you’ll see the benefits in lower energy bills.
Obviously, your return on your investment depends on the housing market in your area as well, and on how much you enjoy the changes while you are still in your home. Contact Wilson Realty Group today for assistance with all of your real estate needs!