Tax Refunds and Your Home – Why use one to improve the other?
And it’s not just something to consider at tax time. Homeowners should think about remodeling projects as long-term investments, whether they splurge on upgrades with a refund or take out a loan. According to the National Association of REALTORS® 2015 Remodeling Impact Report, interior projects that appeal to potential buyers and can provide the most bang for your buck include kitchen upgrades, bathroom renovations, and new wood flooring.
Cameron and Eden Barnett, both 29, of Troy, Ohio, recently bought an 1850s brick farmhouse and used a HomeStyle Renovation mortgage to gut the small kitchen and enlarge the space for modern appliances and fixtures. And even though the renovation took longer than expected and was challenging for the contractor because of thick walls, they say they would make the same decision all over again. “It just feels better to be putting money into the house when we are fairly confident we will one day earn it back – and then some – when we eventually move,” says Eden.
For clients looking to upgrade the outside of their home, exterior projects that are both appealing to buyers and have potential for a positive ROI include new roofing, an upgraded garage door, new vinyl siding, and new vinyl windows, says NAR.