Sure it’s fun to spend your tax refund on a new TV or a get-away vacation, but why not reinvest that money in your home? Here are four suggested ways to spend your tax refund that could help you increase the value of your home.
1. Pay down debt: This is a great opportunity to pay off any home equity loans, or even prepay your mortgage for a month.Work to get rid of any debts you can now, in order to help lessen your financial burden in the future.
2. Home improvements: Tax refunds are a great source for funding those home improvement projects you’ve been dreaming about. Replace any old or outdated appliances and fixtures, refresh your rooms with a new coat of paint or install a stylish backsplash. These projects will not only add value to your home, but they’ll also improve your living experience.
3. Boost energy efficiency: Energy efficiency is a hot-button topic in the housing market, and there are plenty of things that you can do to make your home more energy efficient. Storm doors are an inexpensive but great investment for homes with older front doors. Check your insulation and add additional layers as needed, add more ceiling fans, install a programmable thermostat and consider switching to a low-flow shower head. If you’re looking to make more of an impact, consider buying energy-efficient appliances.
4. Buy flood insurance: Since your homeowners insurance likely doesn’t cover flooding, you may want to consider buying coverage through the National Flood Insurance Program (average cost of $700 per year). Most people write-off this type of insurance, but any area that experiences rain can also experience a flood. It’s better to be safe than sorry, since flooding can be expensive and devastating for any homeowner.