According to a recent study from Edward Jones, only 6 percent of Americans are planning to invest their 2016 tax refunds this year. The study, which surveyed 1,004 respondents across various age groups, regions and income levels, found that the majority of Americans (53 percent) plan to put their tax refund toward necessary expenses, such as student loans and credit card payments.
Thirty-one percent of respondents plan to save their refund, and 9 percent plan to put it toward something fun, like a vacation or entertainment. For homeowners, however, investing your tax refund to improve your home—and increase its value in the process—can be the smartest move of all. Quicken Loans suggests looking at these key areas of your home, which often translate directly to the bottom line:
The kitchen. New appliances or countertops are a great way to invest your refund dollars. Also consider giving your kitchen a less-expensive facelift by painting the cabinets.
The bathroom. Bathrooms are high on the list of priorities for homebuyers, so use your refund to make sure yours is up to par. Consider adding new faucets, a low-flow toilet or a new sink counter.
The walls. One of the most important—and most affordable—home improvements is a fresh coat of paint. A sunny shade or calming neutral will instantly change the look and feel of any room.
The windows. An important investment for not only the look of your home, but its energy efficiency as well, new windows are always a smart investment.
The exterior. Whether it’s building a patio, repairing the roof, or installing new siding, improving your home’s exterior is never a bad idea.
Putting your tax refund into your No. 1 asset will not only improve your home’s value, it’ll also go a long way toward enhancing your living environment. In the end, any way you slice it, it’s an investment for years to come.
Contact me today for more tips on improving your home’s value.