How to Add Value To Your Home
Your home may be your most expensive purchase yet, and there are several ways in which you can increase the value you put into it while making that hefty purchase. You could make money from renting the home, selling it, or from mortgage credit. But how to maximize the potential of your property is something you must work towards achieving. The location of your home is not the only thing adding to its value. A few smart investment decisions can get your back the capital and much beyond it.
While most people look at renovations as a way to add value to the home, there are more profitable ways out there too. Some of you may think that adding a swimming pool to the property can add a lot of attraction and hence value. Coming from our experience it turns out that a pool adds only 2.5% or less to the property value increment. This is simply because most buyers think of it as a high maintenance thing to have. Kitchen remodelling, however, can add about 12.5% to the selling price of your home. What one must know, though, is that renovations need to be done on the basis of an understanding of the housing market and its ways, rather than for personal use. If the owner-occupant renovates the property for self-use then the objective is not to increase the property value. In that case what changes is their quality of living, of course for the better. Renovations for either of the above purposes will involve a big chunk of capital and need to be made in a thoughtful manner. As these renovations call for capital, the question of funding them arises. Traditional lenders are not in favour of funding renovations and here we suggest opting for bridge financing from private lenders. Bridge mortgages are usually secured by the private lenders against an asset you currently have or own. They may be used for renovations or even for the purchase of a new property. The term of such loans is short and a few payments of interest would be needed. This is the prime reason not many lenders are willing to extend a bridge loan so easily. Second mortgages are also a great way to use your home as an asset. Though, we must warn you that the interest rate for such types of mortgages may be higher than normal due to greater risks involved to the lenders. When you secure your second mortgage you can use it for a variety of purposes including debt consolidation which will help repair credit, pay for higher education which will eventually help you earn more, etc. Homes are an investment that keep on giving. And apart from unusual slumps the property prices have historically shown to only appreciate. With the right market information and smart investments you can make the most of this invaluable asset.
If you are looking to add value to your existing home and are confused, do write to us at LendX Financial in Brampton, Greater Toronto Area.