If you’re fortunate enough to have a nice windfall coming your way in the form of a tax refund, there are lots of ways you could spend that money, from a much-needed vacation to a shopping spree at the mall.
But a better idea might be to multiply those dollars by investing them in a home improvement project that will not only enhance your living space and lifestyle, but also increase the value of your home.
According to Remodeling magazine’s 2019 Cost vs. Value Report, the five projects with the greatest return on investment (ROI) in the mid-range cost category are:
Manufactured Stone Veneer - 94.9 percent ROI
Minor Kitchen Remodel - 80.5 percent ROI
Deck Addition (Wood) - 75.6 percent ROI
Siding Replacement - 75.6 percent ROI
Entry Door Replacement (Steel) - 74.9 percent ROI
If your refund isn’t sizeable enough to fund this type of large-scale remodel, a smaller improvement can go a long way in terms of adding value to your home. Consider:
- An exterior paint job. Not only will this protect your home from the elements, it will also work wonders in terms of modernizing your home and adding curb appeal.
- A landscaping update. Need a couple of trees removed—or added—or a manicured garden bed? Put your refund toward planting season, and watch your dollars grow.
- A smart upgrade. Smart home technology—like thermostats, cameras, lighting, and more—is a great way to instantly upgrade your home’s value
- A kitchen or bath enhancement. If you can’t afford to remodel the entire kitchen or bathroom, tackle one key component instead. Replace the countertops, add new cabinets or invest in new fixtures or appliances. Upgrading one feature will add value to the entire room.
Treating yourself with your tax refund is tempting, but treating your home to an upgrade will pay dividends long term.
