One of the best reasons to apply for a home equity loan is to improve your home and raise its value. If this is your goal than you want to make sure every dollar is invested in the right improvements and not into areas that won’t yield a return.
This means that even if you want to finally install surround sound in your home theatre, it might make more sense to grout bathroom tile.
There are several areas of home improvement that can potentially turn your home equity loan into a healthy investment.
A New Kitchen Can Revitalize your Home
There is no room or aspect of a home that figures more greatly into its value and sale than the kitchen. It’s usually the showstopper and the centerpiece that can inspire bidding wars. When looking to increase the value of your home, the conversation should start (and possibly end) with a kitchen revamp.
Finish that Basement
An unfinished basement can look like a crime scene and there’s nothing worse than when you’re giving a tour of your home and your guest asks about your unfinished basement. The price of a basement was built into the price you paid so wouldn’t you rather it be more than boxes, hockey equipment and a rusty furnace?
Using money from a home equity loan to turn a dank basement into a functional living space will pay off in spades.
Don’t Overlook Small Improvements
From sealing a driveway to a new backsplash even more modern appliances, smaller changes cost money but they can result in a more valuable home. Now, the growth might not be enormous but the little things can add up and make a difference in the price of your home.
There are dozens if not hundreds of small improvements you can make in your home. The best strategy is to create a room by room checklist and knock them off over a short window of time.
For most, a home is their most prized asset. By investing further in it you are securing your nest egg or retirement plan. This is never a bad idea and a home equity loan is a proven way to achieve this.