If you’re not one of the unlucky Houston homeowners who actually OWE money to the IRS this year, you might be expecting a tax refund. Though millions of homeowners in the US get tax refunds every year, most people don’t know how to optimize that return and invest it efficiently back into their home – especially if they have any plans to sell. Let us help you out!
Here’s how you can invest your tax return back into your home in 2019:
- Update your plumbing! Though not easily visible on the outside, a home appraiser actually takes the state of your plumbing pretty seriously when assigning value to your home. If you have old and rusty piping, you may want to seriously consider investing your tax refund into it. Using PEX piping, your cost would come up to around $4,000 to $6,000.
- How’s your curb appeal looking? It’s true – when people drive past your home and don’t like what they see on the outside, they’re not going to be too willing to take a look on the inside. Not to mention, parking in the driveway after a long day of work can be a lot more welcoming when coming home to a beautiful house exterior. Curb appeal work, like a new front door, porch decor and furniture and repainting, shouldn’t be more than 1-2% of your home’s current market value. So, if your home is worth 200K, you’re looking at an investment of $1000-$2000 for a potential gamechanger on the value of your home – not bad.
- Is your attic insulated? If not properly insulated, you could be losing 30% of the heat or air-conditioning you’re paying good money for. Insulation is something that can quickly and inexpensively be done DIY style. At an average of $150-200 for the project and considering what you’re saving on heating and AC, this one is a no brainer.
- Kitchen is king. Though pricey, investing in a kitchen or bath remodel is a sure-fire way to receive a return of more than 100 percent! These two areas of the house are a place where a lot of time is spent by homeowners so money well-spent is sure to be noticed and appreciated by prospective buyers.
- We hate that we even have to mention this but considering that only 39% of Americans have enough savings to cover a $1,000 emergency, we must. If you don’t already have an emergency fund, scratch ALL of the above suggestions. An emergency fund is a priority, above all else. Without one, just one major home repair surprise can send you on a financial debt disaster. No bueno. Do your future self a favor and start that emergency fund with this year’s return. You can thank us later.
-The Proguard Team
Too much clutter for comfort? You might want to consider using that tax return to invest in a storage unit this year. Check out our self storage locations for more information on a Proguard location near you!