Most homeowners have a laundry list of home renovation projects they want to accomplish.
Some of these projects are big-ticket items (like a new kitchen). Some of these projects would beef up aesthetics (like adding new landscaping). Some of these projects would add function (like tackling garage organization).
No matter what project you're undertaking, the fact is that it will cost money. The price tag of home renovation projects is one of the top reasons why people hold off on doing them.
While some people may think that home renovation isn't necessary, it's actually one of the most important things you can do once you've purchased a home.
Here are 4 reasons why this is true:
1. It Increases Your Enjoyment of Your Home
Having a home that you love and that brings you comfort is essential. After all, you bought your home so that you can feel safe and secure in it.
It's not all about the essentials, though. Your home should also provide a sense of joy to you every day. While there isn't a dollar value you can place on enjoying your home, it's certainly something that brings you a tangible benefit.
For example, if you have a bathroom that feels like a spa, it can serve as your sanctuary after a long day of work. A family room with comfortable seating and a great TV setup can serve as a place to cozy up for date nights or family movie nights.
Not all home renovation projects have to be as extensive as gutting a bathroom, though. Simple and inexpensive projects such as painting the walls to your liking can have an enormous positive return. Not only will it make your home look fresh and new, but it'll make you feel as if you're living in a home that was customized for you.
Home renovations that add to the joy you experience in your home will have long-lasting benefits for you and your family.
2. It Increases the Function of Your Home
You'll be spending a lot of time in your home. So, not only do you want it to be comfortable, but you want it to be functional.
Unless you are getting a new construction house, your house will have been designed for someone else. The home renovation projects that the previous owner did were completed with their lifestyle in mind. And it may simply not work for how you and your family live.
Renovation projects are commonly undertaken to increase the space of a home. This might include finishing a basement, adding a bedroom and/or bathroom, or adding a deck.
Other renovation projects are done to customize the footprint to the owners' liking. A popular option today is knocking down walls to create an open floor plan.
At its core, a home's primary purpose is to be functional. If your kitchen doesn't have enough storage, adding cabinets will increase its function. If you have multiple children, finishing a basement will give them a place to play.
If you are a handyman, adding a pegboard with a pegboard hook set to your garage will help keep you organized.
There's a never-ending list of things you can do to increase the functionality of your home. The important thing to remember is that what's functional to you may not be functional to someone else. That's why undertaking home renovation projects is a great way to make your space your own.
3. It Increases the Value of Your Home
You may not intend to sell your home any time soon. Even still, most home renovation projects will increase the value of your home.
Since a home is often the most valuable asset that people own, investing in that asset to increase its value is always a smart idea. This can pay dividends if you eventually sell your home, of course, but it could also pay off if you decide to refinance or take a home equity loan.
Having a home that increases in value gives you the ability to tap into the equity you've built. You can then use this equity to re-invest in your home for large-scale projects, or take the cash for things such as paying off other debt, financing your children's college or taking a vacation.
If you're looking for the best projects that increase the value of your home, consider replacing your garage door, beefing up your garage organization by adding a pegboard and pegboard hooks, increasing the curb appeal of the exterior of your home, and adding a wood deck.
4. It Reduces the Cost to Run the Home
Living in a home can be a costly endeavor. In addition to your monthly mortgage, insurance and tax payments, you also have to pay energy bills and finance ongoing maintenance. Home renovation projects can reduce the economic hit of both of these.
Replacing windows and doors that are drafty and not sealed properly can significantly reduce your energy bills. In addition, they can also add to the curb appeal of your home.
Replacing an old furnace, air conditioner, hot water heater and other appliances can also significantly reduce your monthly energy bills. On top of that, energy-efficient home improvements can sometimes be taken as a credit on your annual taxes.
Home renovations also reduce the cost of ongoing maintenance. This can include re-sealing old doors and windows, or improving drainage around your home and/or fixing/patching your roof and gutters.
While getting a new roof or siding on your home may seem like a costly project, it's one that can return value to you in two ways. First, it prevents little problems such as cracks from becoming big problems such as water damage. Second, it increases the aesthetic value of your home, which increases its value.
Get Started on Home Renovation Projects
The great part about home renovations projects is that you'll be reaping the intangible benefits of them while you're living in the home (i.e. the enjoyment you get) as well as the tangible financial benefits that they bring (i.e. higher re-sale value and lower ongoing costs).
So, while you may be hesitant to undertake extensive home renovation projects out of fear or monetary concerns, know that everything you do to personalize your home will bring you a great return on what is likely to big among your largest investments -- both for now and in the future.