Summer is always a time when homeowners make lists of home renovations projects they’d like to tackle. While the cost of home renovation is not cheap, it can actually become a way for you to save money in the long run.
Here are some times when home renovations can actually be good for your bank account:
Saves on Utilities
Updates to your bathroom, appliances and even your roof can really affect your utility costs. Upgrading to more energy-efficient appliances, insulation, faucets, toilets and more can really add up to savings long term.
A Place for Everything
If you’re outgrowing your home, chances are you are trying to fit your everyday items in places that wouldn’t normally store them. An example of that are kitchen items that don’t fit in the kitchen wind up getting stored in the garage or basement. Things like this can often result in lost or misplaced items which then lead to repurchasing items you can’t find. Trust me, those extra purchases really add up quickly.
If your home is laid out well and is the appropriate size for your family’s needs, you will most likely have a place for everything thereby reducing the chances of misplacing them. When things are easily accessible and easier to find, you will reduce the amount of replacements you need to purchase.
Increase Your Home’s Value
Probably the biggest and most common benefit to home renovations is the long term equity you gain in your home. New appliances, roof, bathrooms, etc. all help you down the road when it’s time to sell. Once you sell, with higher home equity, you have more money available to put down on your next house which could reduce your interest rate.
Cutting Costs on Home Renovations
Most home renovations are not cheap, but there are some ways to save on the front end. Here are some tips to help you cut the costs:
1. Don’t finance your home improvement project unless it’s an emergency (i.e. unsafe living conditions like leaking roof, mold removal, etc.). Use cash for your renovations, reducing the added costs of interest payments which can throw a wrench in the long-term savings.
2. Do as many home improvement projects on your own when possible (YouTube is your friend). Be sure to hire contractors when there are projects you cannot do safely on your own.
3. When purchasing appliances, be sure to compare warranties and cost per unit on all your needed supplies. Cheaper isn’t always the best deal for your long-term investment. A cheap appliance that will only last you a few years becomes more expensive than a more expensive, higher quality appliance that will last much longer.
4. The same can be said about wiring, plumbing etc. Skimping on these items for short-term savings can lead to long-term expenses when repairs need to be made on inferior products or workmanship.
As always, start with a budget. If you don’t start with a budget amount, your project could easily cost much more than anticipated.
Make a list of your needs and wants and break down the costs for everything. This will help you to decide what is important and what can really wait or be omitted.