Chances are you already have enough equity in your home to pay for renovations. But before you increase your debt, consider whether it’s good debt or bad debt. While bad debt is used to make a purchase that depreciates, good debt is used to make an investment that rises in value.
In the case of renovations, bad debt would fund improvements that have no value to future buyers. Whereas good debt would add convenience and pleasure today, while increasing your home’s value tomorrow. By opting for good debt, the interest you pay on your equity loan can be more than covered by the increase in resale value.
Improvements to kitchens, bathrooms and outdoor living space offer the highest return on your home renovation investment. Here are a couple of things to keep in mind before moving forward with your home renovation:
· In general, the more recent the home renovation, the higher the return on investment.
· If you’re considering a kitchen home renovation; the most appealing kitchens have an open plan
with an island, and an efficient triangle between the refrigerator, stove, and sink.
· Adding a deck increases the apparent floor space of your home, and can make your summers that much more fun!
· Make outdoor and indoor space blend seamlessly by using French doors and
indoor-style light fixtures and furnishings, not only will you be able to enjoy these home
renovations – they’ll also allow you to increase the asking price on your home.
By carefully selecting your home renovations, your home improvements can pay for themselves, make your living experience more enjoyable and possibly create a healthy profit!
If you have questions about your next home renovation, or how you can maximize the return on your renovation dollar, fill out the form at the top of the page and speak with a MonsterMortgage.ca mortgage expert today!BACK TO BLOG FEED