If you received a large tax refund, you may wonder what to do with it. Investing it might pop into your mind, but the market can be so volatile that you could lose it just as fast as you earned it. Another way to invest your money is by improving your home.
Keep in mind that not every improvement you make on a home will give you a return on your investment. Below are the top five ways to use your tax refund the wisest.
Increase the Curb Appeal
There is one improvement that appeals to everyone, no matter your tastes and that’s curb appeal. How your home looks from the exterior is the first impression anyone gets when coming to your home. You want your curb appeal to impress the masses.
Look around the neighborhood and see how your home compares to others. Is your home on the boring side? Maybe you need a splash of colored landscape throughout. Does your home look boring compared to the others? Think about sprucing it up with more landscaping.
Update the Bathroom
Bathrooms hold a lot of value in a home. Outdated bathrooms can bring a value down quite a bit while an updated bathroom with today’s latest technology and style can improve a home’s value. You don’t have to go all out and do major bathroom renovations, though. Update the flooring and the fixtures and you’ll see an improvement in the home’s value. If you want to take it further, update the countertops or the vanity.
Update the Kitchen
The kitchen is the gathering place in any home. It’s where the whole family meets to talk about their day, unwind, and of course eat so it’s no surprise that updated kitchens add to a home’s value. Just as is the case for bathrooms, kitchens don’t need major remodeling to increase your home’s value.
Consider new flooring or new cabinets, but you don’t have to do both. Update the fixtures or the faucet or consider updating the appliance to have more energy efficient appliances. Any changes you make that update the kitchen can make it more pleasing and more valuable to potential buyers.
Make Energy Efficiency Changes
Everyone loves energy efficiency today. If you can improve the energy efficiency of your home, it will increase its value. There are several ways you can go about this. If you want simple upgrades, you can purchase energy efficient HVAC systems. If you want to go all out and also help the curb appeal of your home, replace the windows and doors with energy efficient options. Even changes that no one will see can affect the value of a home, such as new insulation or solar panels. If you want to keep it simple, change out the light fixtures for energy efficient alternatives.
Adding a Room
Look around your home and think of what it might lack. Are there enough bathrooms for the size home that it is? Could your home use another bedroom or more living space? Adding a functional room can add to the value of your home. It’s best if the room addition is on the main living space, but if you plan to finish the basement to make more living space there, that can add to your value too.
Improving your home with your tax refund is a great way to invest your money. While you won’t see an instant return on your investment, you’ll see it when you sell your home. It’s a great way to put some stability in your investment without worrying about the fluctuations of the stock market.