Tax refunds are usually given at the end of the financial year. The average citizen is legible for a tax rebate of about $3,000. This money can either be deposited directly, carried forward to their next year’s income tax or mailed to them as checks.
While there are common household items that you can purchase like TV sets, a fridge or home theaters; why not consider using your tax refund to improve your homes’ retail value. The idea behind this smart investment is that your home investment value will continue to grow over time. This is unlike any other investment, which can depreciate in value over time and finally become obsolete.
HOW TO USE YOUR TAX REFUND TO IMPROVE YOUR HOME RETAIL VALUE
1. RENOVATE YOUR HOME
Tax rebate can be a very easy and convenient source of giving your home that new facelift you have procrastinated doing. Consider fixing the leaking faucets, faulty bathroom sink, the tattered walls, unkempt lawns, and hedges. Doing a face-lift and carrying out renovations in these areas, can enable you to gain substantial savings in the long term. Some of the benefits you gain from these renovations are discussed below.
I. Improving Water Efficiency
Unknown to you, poor water conservation at home is a major cause of your water bills. The average house loses about 15000 gallons of water from leaky faucets. With a tax refund, you can consider fixing and installing the following much-needed items to reduce water wastage in your home.
A) Fixing leaky faucets and taps
B) Installing flow restrictors that will control water flows into the sinks and hand basins among other outlets that deliver too much water. In turn, they encourage economical use of water.
C) Installing rainwater tanks. Rainwater harvesting systems have now become a mandatory requirement in some states. The harvested water can be used in watering lawns as well as using it for other home uses.
II. Converting part of your garden to mulched.
Mulched garden will reduce the size of your lawn garden, save your work and improve air quality and, in turn, improving the quality of life in your home.
III. Carrying out painting and minor repair work to the walls, floors and roofs.
2. BUYING FLOOD INSURANCE
Floods can wreck a lot of havoc within your home. They can cause short circuits to your electrical systems, damage to your furniture and equipment and even your well-manicured lawns. The replacement and repair costs for these items can usually be very high. So without a proper fund to cushion you from these damages, these floods can significantly reduce your home retail value.
At an average cost of about $700 per year, you can get a flood insurance policy with the National Flood Insurance Program. This Insurance Policy is supported by the Federal Government. The premiums on the flood policy vary depending on your flood risk. For detailed information, visit Floodsmart.gov.
3. BOOSTING YOUR ENERGY EFFICIENCY
With your tax refund paycheck, this is the time to ensure your home is more energy efficient. This will save you a lot of money regarding electricity bills. For more energy efficiency you can consider doing the following.
A) Replacing your low energy fittings with LED lighting and other more efficient lighting
B) Installing a solar lighting system
C) Installing solar panels on the roof
D) Choosing the highest energy star ratings when replacing your home appliances
E) Consider installation of a smart meter and automation
4. SETTLING YOUR DEBTS
Your tax rebate fund can go a long way in helping you to settle your mortgage loan. As home prices continue soaring up, as a home owner you will immensely benefit from paying off your loan. A single additional payment in a year will reduce your loan term to 22 years on a 30-year old mortgage. This can be a smart funding strategy especially if you nearing retirement. Alternatively, you can use the tax rebate to settle high-interest debts or lower your home equity loan.
So the next time you receive your tax rebate, consider investing it in your home.