Monday, March 11, 2013

Tax Season and Home Improvement Projects: It’s a great time to do something great for your home.

Well, it’s March and the 2013 tax season probably has many Americans either thinking about their accountants or waiting by the mail box for that much anticipated refund check from Uncle Sam. What to do with this extra influx of cash back to our pockets is usually a topic debate amongst taxpayers. And this year, if you’re a homeowner, might be a great time to invest in your humble abode.

Tax season is on, and the annual migration of hard earned cash back into our pockets is on its way for many Americans expecting a tax refund this year. And for many, the refund could mean a few extra thousand dollars in their pockets. As a matter of fact in 2012, the IRS had issued 59.2 million refund checks totaling $174.4 billion. Using those numbers, the average refund check is about $3,000. So with this new influx of cash coming, what to do with it usually becomes a topic for debate for taxpayers. One suggestion, if you’re not paying bills this year, use it to build value.

As a homeowner, your home is probably your most important asset, and using this year tax refund to refinance the mortgage at today’s low interest rates could present a responsible opportunity to spend your cash wisely. Low interest rates might not be here in the future, and the 2013 tax rebate can help you pay for the hefty closing costs associated with a refinance.

If you are happy with your current rate, making the investment in your living spaces could also greatly improve various aspects of your life. From increasing the value of your property to improving the quality of your life, and even lowering energy costs, taking on home improvement remodeling projects with refunds can stretch those tax dollars a lot farther than a weekend at the mall.

When considering a home improvement project, keep in mind that even a humble investment can go a long way. From smaller projects such as replacing a front door or painting your home, to larger projects such as kitchen and bathroom remodeling and even flooring, home renovations can offer a satisfying, value driven spot to put the little extra cash into.

A few other ways you might consider spending your dollars if your home is not at the top of your list could include investing in you. From paying down debts, starting or increasing an emergency fund to protect you and your family from a financial emergency, such as a lay off at work, to investing in your health, making value driven decisions should be the common theme across all your considerations. So if you are waiting for that extra money from the IRS, whether it’s a little or boat load, remember to spend it wisely, as recent history has taught us that no one ever knows what the future may hold.

Thursday, January 17, 2013

In a renter’s market, here are a few home improvement tips new real estate investors can use to maximize returns.

Since the start of the U.S. housing crisis, foreclosures have forced millions of American home owners back into the rental markets, leading to a boom of aspiring real estate investor looking to capitalize in this surge of new renters. However, as residential rentals begin to saturate the housing markets, these new, up and coming land lords may find themselves having to go that extra mile, as the market shifts from investors to renters. If you are someone looking to maximize your returns, here are a few ideas to keep in mind and a couple cost effective solutions to achieve these goals.

As the foreclosure crisis continues to draw millions of previous homeowners into rentals across the country, investors and land lords, particularly those in the rapidly growing sector of single family homes, are finding themselves in the perfect storm of relatively low home prices and rising rental rates. Furthermore, the ability to attract high quality renters, such as previous homeowners and their families, allows investors a higher chance of placing the leasing agreement in good hands. But in order to increase your chances for a higher return-on-investment, here are a few ideas to give that leading edge and renter’s appeal. The idea behind these ideas is to provide your property with affordable, highly durable and low maintenance renovations that will add value, beauty and functionality to your investment.

Everybody knows that a first impression can go a real long way, and so can landscaping, a little pressure cleaning and/or a fresh coat of exterior paint. Keeping the property’s first impression should boost your demand for a minimal investment. Landscaping does not and should not be elaborate, and more importantly, should remain extremely easy to maintain for any potential renters. In some parts of the country people are even turning to organic green dyes that are sprayed over lawns to bring the lush green look back to their property. And as crazy as this might sound, for many years, lawn painting has commonly been used for athletic fields and golf courses. Pressure cleaning the driveways and roofs of the property will also assist in maintaining the aesthetics of the home, as will a fresh coat of paint on a driveway or the exterior of the home if it is needed.

In the interior, the two main areas to focus on will be the kitchen and bathroom spaces, particularly in the kitchen. Whether a property is being sold or rented, the kitchen is always front and center for any decision, and it is this central living space that can be the deal maker or breaker. Making sure that the cabinetry is in working order and free from things such as water damage and unsightly doors is important. If any or all of these areas are in need of repair, affordable kitchen cabinets and bathroom vanity options are readily available and reasonably priced. Ready-to-assemble cabinets, also known as RTA cabinets or knock downs, many times offer investors a highly durable, all wood construction solution that will cost significantly less than many name brand cabinet manufacturers, while providing an overall better product. Intimate areas such as toilets, showers and bath tubs should also be almost immaculate, and free of mold and water stains. In all, a renter is more likely to focus their attention on these critical areas, with again, the kitchen being an important selling point for any renter or buyer. A fresh coat of affordable high gloss interior paint throughout the entire home and clean flooring is a must for any rental property.

It is important that new real estate investors always remember that they will not be living in this home themselves, and ensuring that the upgrades you commit to are aligned with your property’s investment. Maintaining an affordable budget that will allow you to achieve profitability in as little time as possible should be job one.