By: Elizabeth Trach
When you own your own home, it seems like there’s always a list of projects to complete to keep it both beautiful and functional. Sometimes a broken air conditioner or garage door will force your hand and you’ll have to make a repair, but usually the decisions about which projects to tackle are all yours. Choose wisely, and you’ll reap the benefits when you sell your home for top dollar in the future.
So how’s a cost-conscious homeowner supposed to know which home improvement projects will bring the great return on investment for 2017? Each year, Remodeling magazine conducts a study about the cost of the most popular home improvement projects, and they calculate how much of the costs homeowners make back when they sell those properties. The 2016 results are the best way to plan your 2017 home improvement spending to get the most for your money.
Top 5 Home Projects for 2017
It’s not surprising that some of the best investments you can make in your home are ones that add to its efficiency and curb appeal. Making your home more energy-efficient by adding insulation and blocking drafts will lower your heating and cooling costs so much that these projects almost pay for themselves. Additionally, making your house look great from the street will attract future buyers. Each of Remodeling’s top five projects will bring back some of the money you invest:
- Adding Insulation: This is the only home improvement project that consistently pays for itself — and then some. You can’t see the results, but you’ll feel them every time you turn on the heat or open your electricity bill.
- Adding Stone Veneer: Sprucing up your home’s exterior with luxury materials really pays off. If stone veneer would be out of place with your home’s architectural style, replacing the siding also provides an excellent return on investment.
- Replacing Garage Doors: Upgrading garage doors provides an instant facelift and can boost your quality of life when you don’t have to worry about them getting stuck in inclement weather anymore.
- Replacing Exterior Doors: Replacing exterior doors with steel or fiberglass models is a one-two punch that lets you improve the look of your entryway while stopping drafts in their tracks.
- Remodeling the Kitchen: A minor kitchen remodel that includes cabinet refacing, efficient appliances, new fixtures and a clean color scheme will really pay off. You’ll enjoy cooking much more in a room you love, and future buyers will appreciate your good taste in this all-important room.
How to Cover the Costs of Your Remodeling Projects
Once you’ve chosen which home improvement project you’re ready to invest in this year, you’ll need to plan how to finance it. Depending on the total cost and your credit score, one of these popular payment methods should work for these mid-range projects:
- Cash Savings: If a quick kitchen update is under $1,000, or if your state provides rebates for energy efficient projects, as some do according to Energy.gov, paying in cash can be easier than you think. Avoiding interest charges will save you money in the long run, so it’s a good option if you can afford it.
- Credit Cards: Financing your home improvement project with a new credit card is a good way to take advantage of an interest-free period and/or bonus points. If you’ve received a pre-approved credit card offer recently, you could get a good deal if you do your research before signing up.
- HELOC: A Home Equity Line of Credit typically offers low interest rates and a long payback period for homeowners, but you need to have paid off a certain percentage of your mortgage to qualify. If you’ve lived in your home for several years, it’s worth talking to a mortgage specialist to see if you should apply.
- Mortgage Refinance: If you’re currently paying a high interest rate on your mortgage, you might be able to refinance your loan at a lower rate and cash out some home improvement money without raising your monthly payment. Talk to a specialist to weigh your options.
**Elizabeth Trach is a professional writer and editor living in Newburyport, MA. In addition to scrupulously saving her pennies, she also sings in a band, grows almost all her own food, and occasionally even cooks it. You can catch up on all her adventures in extreme gardening at Port Potager.