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So you have made the leap into home ownership.
As a young professional the allure of owning your own home is unfathomable. Then again it also brings about a never ending project I like to call home improvement 101. Every time you think you have everything done, there is always something that can be improved.
In this section I will be focusing on these improvement projects as well as going through the steps necessary to move into an investor role. Also check out our refinance calculator to pay for these projects and more.
Home Improvements
The first thing many young professionals want to do when they move into a new house is change the whole thing to their personal tastes. For most projects this is relatively inexpensive such as painting or window treatments.
For major renovations you really need to check out the cost versus benefit. This is the toughest part for any young professional to understand. If you do not plan to be living in a property for more than 3 years some of these costs you will never recoup. While others it really depends on how far you go.
Some examples:
Renovating a bathroom: Cost is usually pretty expensive and depending on how much you spend you should see some sort of return on this investment.
Renovating a kitchen: Cost is always expensive even if you go the least expensive route. If you go with all high end new appliances as well as granite or marble counter tops, and custom cabinets this is going to be expensive. The question you need to ask yourself will be are other people with similar homes doing these upgrades. (It is always a good idea to have a real estate agent as a friend or advisor, usually the one you bought the house from is a good start.) A professional can tell you that all the other similar houses in your market and price range do or do not generally have these upgrades. As always this will be your decision just make sure you know what you are getting into.
Renovating the floors: Cost will vary depending on style of flooring. The most inexpensive way to go is generally carpet or linoleum. If you don’t plan on being in a house very long at all this may be an option for you (maybe it will be a rental). Then again putting down wood or ceramic tile floors will probably have the most cost but also will look the best. Generally speaking you will get something of your investment back if you upgrade the flooring with wood or ceramic tile.
Moving into the investor role.
Making a number of the upgrades stated above can usually be a quick way to build up the equity you have in your current property. Just remember to become an investor you will also need some cash as well as equity so consider this when making home improvement decisions. If you only plan on being in your house say 2 years you probably would be better served using equity or cash towards investing rather than a new kitchen unless you are advised by an agent it needs to be done in order to sell.
Check out the investor section here.
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