Whether you have just purchased your first home, or you’re an experienced homebuyer, the opportunities to successfully invest are plentiful. That is, as long as you know what constitutes a good home investment. Real estate itself is a great opportunity to invest because it can generate passive income and increase value over time. Through home maintenance, improvements, and upgrades, you can continue to invest in your home and bring money back into your pocket.
With being a homeowner comes the responsibilities of home maintenance tasks. While these may not be at the top at your “to-do” list, they should be. Performing routine maintenance tasks on your home provides several benefits including extending the lifespan of your home, reducing repair costs, increasing resale value, as well as providing you, the homeowner, with peace of mind. A few key maintenance tasks you should complete routinely are: check and update the plumbing and service your HVAC system.
Many older homes were built with metal piping, that over time, can rust and burst. Giving your plumbing a once over with each change of season will allow you to check for any cracks or potential leaks before you end up with a bigger project than intended—seriously, a burst pipe is a mess! You can invest in PEX piping—a cheaper, and easy to install alternative to copper piping. With the level of reliability PEX provides, this home maintenance task will give you at least 50 years of worry-free plumbing and less money spent on repairs.
Servicing your HVAC system may sound like you’re spending more money than saving, but that’s not necessarily the case. Ensuring your system is up-to-date and functioning properly with routine check-ups is a good practice to save you money in the long run. A poor running system will work double the amount necessary to complete its basic function, resulting in lower efficiency and a higher energy bill. Investing in routine maintenance for your HVAC system will prevent any malfunctions, and save you from spending more money.
It should come as no surprise that home improvement projects can produce a high return on investment if executed properly. Granted, not all home improvement projects can save you money in the long run. Projects that you tailor to your specific needs may not be as popular as those that appeal to the masses. Some benefits of home improvement projects are added comfort, energy efficiency, in addition to greater curb appeal. While you may not see your money come back to you as quickly as you would with maintenance projects, should you decide to sell, improvement projects can increase your asking price among other things, proving to be a good investment.
A kitchen renovation is currently one of the most popular home improvement projects homeowners complete. Instead of gutting your entire kitchen down to the studs, completing a minor remodel and replacing only a few aspects will give you the most kickback in terms of revenue. While a minor kitchen remodel costs between $10,000 to $15,000, you can expect to see a return of cost of 81%. Consider replacing the flooring, installing new appliances, and refurbishing your cabinets for the most successful investment.
Another home improvement you can perform to save money is replacing windows and doors. New windows not only improve the appearance of your house but also positively impact your bills each month. High-quality windows will keep your energy costs down, and the money you retain up.
A garage door replacement may not be as exciting as a room remodel, but it can be one of the best projects you invest in. Depending on the cost of the garage door you choose, you can see a return of almost 100%, which makes this project a no brainer.
When thinking of curb appeal, replacing your entry door and installing stone veneer to the exterior of your home is a great place to start. The appearance of your home can directly affect the amount of money that it’s worth, so splurging on a new entryway may not seem so far-fetched. A front door upgrade can provide you with a cost recoup of 91.3% and the stone veneer 97.1%.
Smart home technology is on the rise, and there’s a good reason for it. Smart home upgrades provide homeowners with convenience, increased functionality, and. With smart technology, you can make commands with your voice or by the touch of a finger through an app. This industry is ever-changing and continues to grow, so investing in it now will help you in the long run. If you’re new to the world of smart home technology, a few products to get you started with your home upgrades are smart thermostats and lighting.
Smart thermostats, such as the Nest Learning Thermostat, learn how you heat and control your home. It then can take control to heat and cool your home to the exact time and temperature you prefer to be the most efficient possible. This device saves you time, energy, and money, therefore making the initial purchase and installation worth it. Their cost savings are over 20% making you a smart investor.
Smart lighting, such as the Phillips Hue light kit, comes with a hub and bulbs to accommodate all your lighting needs. It simply connects to your router, and from there you’re able to ensure all your lights are off (or on) from anywhere in the world. You can spend a few extra dollars to incorporate a motion sensor and take convenience to the next level. This improves your ability to manage your use of utilities and in theory will then save you money.
No matter which route decide—whether it be one project category or all three—taking the time to care for your home will benefit you. Each project can be seen as an investment that will keep you in the green and make living life at home filled with ease.