Elevating Your Investment: Home Equity Line Of Credit

Have you given thought to tapping into your home's equity to complete work around the home? I was recently asked to contribute to a news piece on “the best home improvement projects for homeowners to invest in (with funds from home equity loans/HELOCs) to boost their home's value?” Here are my thoughts.

There are a number of ways to fund your home improvements to maximize the profits of the sale of your home. HELOCs are a great, quick and easy way to have available funds that will be paid back upon the sale. Here are the best projects to hone in on when considering using a HELOC –

1. Upgrade your kitchen to create a desirable space for hosting company and dining. Does your kitchen need a few minor updates or a complete overhaul? Think about new, modern cabinetry, new appliances and sparkling countertops. Finishing off the project with less expensive options such as a marble backsplash and contemporary cabinet pulls will make the project pop.
2. Replace older windows. Windows are not only our vision to the outside world, it is also protection. Having outdated windows will limit the enjoyment of opening up the space, offering natural light and enjoying fresh air. In places where extreme cold and hot temperatures are a factor, windows will also help with energy efficiency, offering more appeal to buyers.
3. Invest in your outdoor living space. In our post-pandemic world, outdoor living space is an extension of our home, allowing for more area to inhabit. Whether you are adding something larger such as a pool, or just adding to the quality of your space with a larger patio, pavers, or beautifying the vegetation, all of these will add to the general appeal of your home.
4. Update your bathrooms and swap out outdated plumbing fixtures. Upgrading tile, bath tubs, sinks and vanities will go a long way. Not only will you be beatifying the space, you will also have a new, clean space for someone else to envision themselves in. Also consider fixtures such as faucets, shower heads and valves.
5. Upgrade and replace floors and baseboards. Pull out all dirty and worn carpet and other flooring. Keep it simple and select a single flooring that is popular in your market – it may be tile, it may be wood. Tip: avoid multiple flooring materials, types and textures; these will stand out and it will be the only thing buyers will focus on.
6. Paint is one of the least expensive upgrades you can make to your home. Whether to either the interior, exterior or both, a new layer of paint will leave your home looking clean, fresh and ultimately make the space appear more livable.

There are many other high price items that buyers want in excellent condition during a purchase – consider items such as air conditioning and heating units, condition of the roof, electrical panel updates, hot water heaters, and plumbing. Create a budget and stick with it.