Experts agree that buying a home is one of the best ways to accumulate wealth. Over time, equity builds and appreciation can greatly add to the value of a homeowner’s investment.
But there are other ways to add to that wealth, simply by improving your home, finding ways to cut costs, or using your home to bring in monthly income.
Remodel thoughtfully: The best renovations for adding to your home’s value are those that increase livable space. Finishing a basement or attic, converting a garage into a master bedroom, creating patios, decks and fire pits that expand living areas to the outdoors – all our smart ways to increase the return on your investment.
Refinance: Moving to a lower interest rate can save you tens of thousands of dollars over the years, even factoring in closing costs. Keep an eye on current rates and pounce when the numbers are right.
Practice preventative maintenance: “It’s hard to put a number on this,” admits Forbes. But staying one step ahead of maintenance issues will surely save you money. Forbes offers the example of a water heater that is nearing the end of its 10-year warranty. “Some of us let them (water heaters) run until they die.” That can result in an unexpected leak that damages floors, walls, and possessions, costing you money. Take care of aging house systems before they break.
Use your home as a rental property: If you’re planning to move, consider keeping the home as rental property. The rent will hopefully cover your mortgage payments, while the home continues to build equity and appreciate.