As defined, home equity is the net current value of an owned property less any mortgages and liens tied to the property.
Home equity moves depending on two main factors: (1) when mortgages or liens are paid down and (2) when home values move.
When someone takes a mortgage, they are just required to put the minimum monthly mortgage payments. What happens after that is a mystery to many. Unknown to many, each time a homeowner makes a monthly payment, it leads to an even larger home equity.
Improving Your Home will Increase Your Home Equity
When you make improvements and repairs to the property, this can have a positive impact on the home value. This, i turn, may increase home equity. Although not all home improvements add value to a property, certain projects will.
You can do this by doing scheduled maintenance and making necessary improvements to keep the home updated. These projects are essential in keeping the property in a habitable state.
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A property that’s well-maintained will have a strong market value. On the other hand, a house that’s poorly maintained will lose its value.
Some of these home renovations may need large sums of money. However, there are many ways to improve the home value without breaking the bank. Be sure to pick projects that will cost you little but will have the high return on investment.
Here are some budget-friendly tricks that will boost your home value:
1. Update Your Kitchen and Bath
Although, this may need some money, updating the kitchen and bath need not burn a hole in your pocket. If you want a home renovation that will surely have a high return on investment, it’s this project.
A dated kitchen and bathroom will drag the home value down. If ever you’re planning on selling a home, this will discourage a lot of potential buyers to make the purchase. An updated one, on the other hand, will have a huge positive impact on your property.
2. Give Your Home a Fresh Facelift – Paint it
If you’re looking for a very cheap way to improve the overall appearance of your otherwise dreary abode, slabbing on a fresh coat of paint will do the trick.
New paint can give new life to any property. There are also modern paint products that contain substances that absorb harmful and foul airborne toxins. When painted on your interior walls, it won’t only make your space look fresh, it will make the indoor air cleaner too.
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3. Improve Curb Appeal
This is a very simple idea; improving your property‘s curb appeal will but your home value. Walk across the street and look at your house from there. If the view isn’t very pleasing, then you need to have some work done.
Have your garden weeded out. Manicure the front lawn. Give your front door a splash of paint. Do simple touch-ups. Fix broken lawn lights.
These subtle changes may seem insignificant but they have a big impact on your home value.
4. Caulk It
Water can cause huge damage to your house so you need to keep it out where it should be.
You can spend large sums of money for impressive paint jobs and complete redecorations. However, if you don’t fix damages caused by leaking or seepage, you’re just wasting money. Protect the home’s interior by making sure that you caulk around windows, door jams, sinks, tubs, and pipes. Caulking keeps the water out and prevents any damage.