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| Home Equity, Increasing |
| This DIY Basic brought to you by Ditech provides tips on how to increase your home's equity. |
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For many of us, our home is our biggest asset so maintaining -- or even improving -- its value makes sense. One way to do this is by updating or adding on to your home. Before you pick up a hammer, however, it pays to do some research (figure A) since not all renovations are created equal. Of all the possibilities, here are some that will give you the best return on investment (ROI). - Experts agree that a minor kitchen remodel (figure B) is hands down the top choice in terms of the best one-year return on investment. In fact, a well executed remove will net an 88-percent ROI.
- A bathroom remodel (figure C) or a bathroom addition is another great choice, and you can expect to get an 81-percent ROI on either of these.
- A pricier option -- but still a good investment -- is a family room addition that can net you a 75-percent return on your investment.
- And just below a family room addition is a major kitchen remodel, which means you gut it completely -- counters, cabinets, flooring. The works! Expect a 71-percent ROI for a major kitchen remodel.
- No renovation is going to be worth the investment if you don't use care in selecting your contractors (figure D). Whether a carpenter, electrician, roofer or plumber, the contractors you hire should be licensed and able to provide proof of insurance coverage, including worker's compensation. Ask for references and insist that the necessary permits are obtained to complete the project.
Home improvements not only increase the value of your home, but they can be financed by accessing the equity in your home. By taking out a home-equity loan and putting the money back into your home in upgrades, you're guaranteed a sound investment.
RESOURCES :
Ditech.com Information
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Website: www.ditech.com
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