Try These Affordable Renovation Ideas to Boost Your Home’s Value!

Homes are expensive. For most people, buying a home is the most expensive purchase they will ever make in their life and is a huge investment. It only makes sense to want to protect that investment and want it to grow. But how do you grow a home investment and how do you protect it? Aside from having home insurance, a home needs to be taken cared of and updated every few years for repairs and features enhancement. Careful planning of home improvement projects and home renovation ideas is a must! Below are some of our affordable recommendations for those who want to increase their home’s value!

Colour Scheme Revamp

A colour scheme revamp is only as expensive as the cost of paint. Repainting a room can instantly refresh it and cost only a few hundred dollars but can increase a home’s value by a few thousands. Good colour emphasizes features, improves lighting, and smoothens wall imperfections.

Think About Landscaping and Curb Appeal

Curb appeal sells. A little tender loving care for the lawn can improve home value by three-fold compared to the cost of lawn care expenses. Additional structural improvements such as walkways can add thousands to a home’s value. You can also go for a garage door repainting or replacement, try painting the front door, adding lighting, and upgrading the house number and mailbox. First impressions make a huge difference when it comes to home value. The key is to not go over the top and make universally pleasing additions that make the home more attractive.

Replace Old Windows

Replacing old windows usually costs around $3,000-$10,000 but the energy savings per year can recuperate that amount in just a few years. More so, new windows add a lot of cosmetic value to a home plus bring more sunlight inside. A home that is energy-efficient, pretty, and has good lighting usually sells for a lot more. A good market price means bigger home equity for the homeowner too.

Energy-Efficient Upgrades

Under insulation can rack up thousands of dollars in energy bills but the cost of adding extra insulation is usually at just around $1,000-$2,000 for an average-size home. If the home is in a particularly cold location, the right insulation can bring significant savings that are very attractive for possible future buyers.

Go Hardwood

Lots of people are worried about installing hardwood floors thinking they are not only expensive to install but also a pain to maintain. While it is true that installation can go around $10,000, there are many finishes available these days that make maintaining hardwood floors easier. More so, if computing cost per square footage, going for a hardwood floor may turn out to be cheaper than opting for carpeting.

Want to boost your home’s value with affordable renovations but currently low on funds? You can use your existing home equity to fund home renovations! Contact us so we can tell you more about how to accomplish this with a home equity loan as well as the possible long-term benefits for you.

 

How to Leverage Your Home Equity to Cope with COVID-19

With how the whole world is trying to cope with the effects of COVID-19 these days, it is still too early to tell how everyone will get through the long-term financial ramifications linked with it. Unemployment is still rising and plenty of people are having a challenging time paying bills and staying afloat in Canada. In our neighbour country below, people are facing unemployment rates of as high as 30% and things are still escalating. How can people recover from COVID-19’s effect on their finances?

The good news is that for homeowners, the money paid towards their mortgage goes to their home equity. The more payments that has been done, the bigger the home equity is going to be. This translates to more than $6 trillion available equity for the 45 million Americans who are homeowners and the Canadian figures are likely to reflect this as well. If you’re a homeowner, now is truly the best time to tap your home equity and make it work for you.

Leverage Your Home Equity

With job loss and businesses closing causing loss of revenue, now is one of the best times to leverage the value that you’ve built up in your home in the form of a HELOC, a second mortgage, or a home equity loan.

You may want to get a HELOC if you will be using the funds from your home equity for small but frequent purchases and expenses, such as bills, medications, and necessities. A home equity loan or a second mortgage can be better choices if you want a one-time access to a huge amount of cash.

HELOC or a Second Mortgage?

A HELOC would be great if you’re after flexibility and want the option of having access to cash but is not sure how much you will need or how often you will need it. It allows you the freedom to take as little or as much of your funds as needed and only charges interest for the withdrawn amount. This will allow you to save a lot of money and ease some of your worries should the lockdowns extend for a few weeks or months longer.

A second mortgage would be great if you coincidentally also have large expenses ahead, such as needing an expensive surgery that is not covered by the usual channels or need to pay for home repairs that can’t be put-off. The interest will be more substantial as compared to a HELOC but you get to enjoy access to almost all of your home equity without having to sell your home.

Unlock Your Home Equity

Know that no matter what option you choose to unlock your home equity, you’ll have to consider multiple pros and cons and it will be best to consult mortgage professionals for you to make a better-informed decision. There are many ways that you can make use of your home equity during COVID-19 and you must weigh your options with an eye towards the future. Contact us at Mortgage Central Canada if you have any questions about using your home equity during a pandemic.