Buying a home is a major accomplishment, but it’s not without long-term costs. Not only is there the initial expense of purchasing plus closing costs and a down payment, there’s the cost of maintaining the property.
Maintenance and repairs might be few and far in between if you purchase a fairly newer house in good condition. However, homes don’t stay new forever, and items eventually break and need replacing.
Some homeowners make the mistake of putting off repairs and maintenance for as long as they can. But ignoring a problem doesn’t benefit your pocket. A small issue can quickly turn into a big one, ultimately costing you more money. Rather than ignore problems with your home, tackle these and update the home at the first sign of trouble.
With this approach, you can avoid complications and save money. Of course, there’s a bigger question at hand: where to find money to remodel or repair your home?
There’s the option of using a credit card or dipping into your emergency savings account. But this can result in debt, and you might deplete your savings. On the other hand, if you have ample home equity, getting a cash-out refinance can provide funds to remodel your home. Since a mortgage refinance typically has rates lower than most credit cards, you can get a fixed term and save money on interest.
Funds from a cash-out refinance can be used in a variety of ways to give your home a completely new look. Fortunately, you don’t have to do a lot to improve the space. Here’s a look at simple things you can do to give your home an updated appearance.
1. Update the kitchen and bathrooms
An outdated kitchen and bathroom can make your house feel old and unattractive. Kitchen and bathroom updates can be costly, but there are ways to complete a remodel without breaking the bank.
The truth is, you don’t need the highest quality of materials to create a newer, improved space. If you want to save money, you can successfully achieve a quality look and boost your property’s value using other types of materials. For example, there’s engineered wood for bathroom and kitchen cabinets that’s comparable in quality to real wood, but at a fraction of the cost.
Additionally, laminate countertops have come a long way over the past few years with styles and colors comparable to granite. For the kitchen, you can find amazing prices on appliances at scratch and dent stores.
A fresh coat of paint and switching out fixtures, sinks, and faucets in both the kitchen and bathrooms with a modern, sophisticated design can polish off any remodel. A minor kitchen remodel offers an 82.7 percent return on investment.
Click here for eco-friendly kitchen ideas.
2. New flooring
The kitchen and bathrooms aren’t the only areas in your house that’ll benefit from a simple update. Even if your house is tidy and nicely decorated, old or damaged flooring can detract from its beauty.
You don’t have to spend a fortune to update the flooring. You can choose laminate hardwood flooring instead of real wood, and many home improvement stores offer affordable pricing on carpet and tile.
3. Energy-efficient windows
Then again, maybe you’re okay with the interior of your house, but you’re looking for ways to make your home more energy-efficient.
If your windows and doors are old and outdated, updating with an energy-efficient alternative provides better insulation, and as a result, your heating and air conditioning unit doesn’t have to work as hard.
There’s the initial cost of buying new windows and doors, but you’ll enjoy long-term savings as your energy costs decrease. “Expect a return on your investment of at least 70 percent.”
On a similar note, you could fix your drafts.
4. New furniture
It takes money to furnish or refurnish an entire house. If you don’t have enough cash for new furniture, it might feel like you’re living in a time warp.Refinancing your mortgage and pulling out some of your equity can provide extra cash to redecorate your living space.
You can buy new furniture for your living room, your family room or your bedrooms. Or use the cash to create a home office. New furniture not only gives your house an updated, fresh look, it creates a space you’re comfortable with.