I have had the “money pit of doom” for 13 years, but I still love my house. Each year this 62-year old small brick house surprises me with another leak or break. From new windows, new tile, to a new sprinkler system for my yard, I have fixed up something in every square foot of my house and yard! The worst news is that I am only 2/3 of the way done! However, instead of thinking about moving to a bigger or better house, I think about how I will make my house nicer.
Some people say that your house is your best investment. Other people say that is is not an investment at all in this economy. But your house is where you and your family spend most of your time and you want it to be as nice as possible. Even small repairs can prevent huge ones in the long run. Also, you never know when you might need to sell the house.
The “15 second” opinion
Whether we like it or not, someone will make a judgment about our house within 15 seconds of seeing it — often before they enter the front door. So I always say start with improvements on the outside and move to the rooms that will be seen the most.
Some improvements are little to no money spent
Think of the cheapest thing that you can do right now to increase the value of your home. It may even be as simple as getting all of the trash in your yard picked up. Other really simple home improvements include painting the outside trim, adding a few more flowers to the front bed, or trimming the overgrown hedges. If there are patches of grass missing, add a few seeds.
Budget in 3% for home improvement
I have been spending approximately 5% of my gross income on fixing up my house. This may sound like a lot, but many financial advisors say that you should spend at least 3% of your budget in fixing it up. This 3% will be a great investment in the long run. Save up the money in a money market account until you need it. Use RateCatcher.com to find the best money market rates.
Hundreds spent can equal THOUSANDS in return
This 3% can mean thousands of dollars of value added to your house. Some of the best improvement investments are repaving your cracked driveway, freshly repairing drywall/repainting some of your main rooms, and deep cleaning your floors. Instead of spending $30,000 on a new kitchen, spend $1,000 to refinish the cabinets to a completely different color.
Think of everything you love about your house. It could be the location, it’s uniqueness or the fact that you live on a cul-de-sac. Is it even as simple as you loving the view from the upstairs balcony? There is something that attracted you to it in the first place. Investing in fixing up your house is like adding money to the bank. Remember to treat her well and she will treat you well for years to come.
