What would you do with an extra $3,000? That is the average tax return of a typical family household. With that amount of cash most families use it for a nice vacation or buy a big TV for the family room. However, to get the most out of your tax return we suggest investing that money into your home. Considering your home is the biggest piece of equity most families have, improving it and increasing its value is one of the best investments you can enjoy. The folks at ProBuilt Steel have five home improvement investments you can use your tax return on.
Energy Efficient Appliances
Energy usage is expected to increase every year, this is based on society’s dependence on technology and electricity to function with our day to day activities. The U.S. Energy Information Administration (EIA) reported that in 2012, the average annual electricity consumption for U.S. residential customers was 903 kWh per month. Based on the average pricing of electricity cost in the U.S. shown below, that’s an average of $110 per month for 2012 and it’s shown to be increasing over time.
To decrease your monthly electricity bill and gain potential energy saving tax credits, we recommend updating your home appliances to energy saving ones. These can be one or all of the following:
- Washer & Dryer
- Electric Oven
The benefits of these items will be seen over time as your energy bill will decrease over time.
Fix Roof & Clean Gutters
Most home owners don’t take the time to inspect their roof for damage or problems. This is something that should be done at least once a year to prevent a major disaster in the home. Using your tax return to have a trained professional inspect and repair any damage they find on your roof will ensure your home will be around to withstand any force Mother Nature has in mind. In addition, it’s great to have someone clean and repair any broken gutters you might have. These are important for carrying water away from the roof of your home and if there’s nowhere to take the water it will just pool up on your roof.
Add a Garage or Storage Space
Over the years people will accumulate a lot of items. This is fine, but there comes a point when it starts to become clutter in the home. One solution we suggest is to add a steel garage or small steel shed. These structures are built to last for years without damage and are a simple addition to any home. Having extra storage space for a home can add more value to the home and enhance its appeal to prospective buyers, if you’re selling in the near future. Homeowners can also use this extra structure to store their recreational vehicles or classic cars if they have any. This will keep those items safe and secure from any damage or mishaps.
Give it a Fresh Coat of Paint
Painting your home inside or out will instantly improve the look and curb appeal of your home. This is probably the easiest of all the tips we will list. Why does this help improve value? Because, it gives your home a clean and modern look. We recommend you stick to neutral colors that complement the décor of your home to make it appeal to a greater audience. Hiring professional painters will ensure the job will be clean and done right.
Fix or Replace Old Doors & Windows
Old doors and windows in your home can be eating away at your wallet. It’s estimated that around one-third of your home’s total heat loss is attributed to cracks and opening around your old doors and windows during the winter time. In addition, these cracks and openings can be adding unnecessary heat in the home during the summer time. We recommend you seal and insulate those openings, if you can to be the most cost effective option. If you find your doors and windows are too old or damaged to mend. We recommend you purchase Energy Star rated windows or doors with your tax return. This is because most Energy Star rated windows and doors benefit from a tax credit you can claim for next year’s taxes. In a sense you’re double dipping with your investment and making the most out of it. This improvement won’t only save you money from lower energy costs, but it will improve the curb appeal of your home and provide you with a potentially bigger tax refund next year.
These are our top home improvement investments to spend your tax refund on. You won’t only add value to your home, but it will also improve the look and feel the house as well. Whatever you decide to do with your tax return, think about how you can invest it improve you or your family’s future.
Post written by Rainier Fuclan