There are many reasons one may want to invest in their property. In this brief article we’ll discuss some of the more significant benefits one could realize. Of course, everyones situation is unique but the below lineup, historically have been quiet reliable benefits and have outpaced other investment vehicles by a mile.
Let’s jump in!
- Increased Home Value
One of the major reasons investing in your property can make a ton of sense, is the ROI (Return on Investment) you can get when completing certain upgrades.
Some studies have shown for example renovating your kitchen could yield as much as $1.25 of home value increase per $1 spent. A 25% return is absolutely incredible when considering the returns of a savings account, CD’s and really most other common investment vehicles.
Putting money into your property can be like putting money into a high yield account that at some point could give back not only your investment but a handsome return
- Tax Benefits
Depending on your modification, there could be sizable tax benefits and advantages.
Anything that you do to your property to increase it’s efficiency and make it more environmentally friendly can give a home owner tax credits as much as 30% of the upgrades cost. This could include lighting, windows… even something as grand as a solar system, can earn a home owner wonderful tax benefits.
- Protection Against Inflation
When considering the above and the possible returns from investing in your property, it makes home upgrades an excellent hedge against inflation.
If the value of the dollar drops but you have a vehicle with perhaps 100s of thousands of dollars in it, appreciating faster than the dollars are depreciating otherwise, you create excellent protection on what is often ones largest investment (their home).
- Easier Access to Loans
Like most things there are some nuances to this and everyones situation is different but in many circumstances, owning property can be a sign of financial strength and make a person much more attractive to lenders.
Additionally, the equity you have in property and the collateral it represents can make that loan decision even easier on the underwriter making it.
Equity in a home with rising value can represent the opportunity to purchase an investment property and further compound your returns, start a business or more.
- The enjoyment of living in a great environment
Often times spending money on your home can feel like a splurge. When your investment has the potential not to only be safe but even earn a handsome return, creating a wonderful environment is an easier decision to make.
The kitchen, the bathroom, renovating that basement and/or many other things can not only be wonderfully beneficial economically but will enhance your quality of life along the way.
Living in an environment that reflects the way you want to live while doing it in a way your expenses are safe is an ideal scenerio.
In conclusion, investing in your home takes thought and strategy. Many things need to be considered when making these choices but if the right choices are made, there is tremendous upside potential for the home owner.
Not only is there tremendous economic potential but while you feel the satisfaction of building your net worth, you can do it in a beautiful environment bringing an amazing life full circle!
Witt & Sons Custom Carpentry specializes in quality work that will give you an excellent shot at capturing many of the above benefits. We understand the importance of your home and the impact it can have on your life. That’s why we go to great lengths to ensure the work you enlist us to do, is of the absolute highest quality, for you not only to enjoy but to protect the value of your home and in turn your net worth.
For questions or quotes, call us today! (719)602-5000