Investing your holiday or year-end bonus in home improvements is smart thinking. While planning a getaway to Hawaii sounds like the perfect way to spend that windfall, consider how using that money on your home instead will increase its long-term value.
$500 Bonus: Focus on the details
Add curb appeal. Try adding or updating some of the basics like a new mailbox, flower boxes, new house numbers or outdoor lighting and shrubs. Small touches can make for noteworthy differences. Take your exterior upgrades up a notch by painting your front door for a clean look.
$1,000 Bonus: Enhance and improve
Upgrade your water heater. Swapping a standard water heater for a tankless model isn’t a fun purchase but will save energy and money because it heats the water only as needed.
$2,000 bonus: More glam is worth it
Upgrade your home’s lighting. Switch out flush-mount fixtures for pendants or chandeliers, as this deliberately brings the light down and provides balance to the room. Change out your incandescent bulbs for LEDs. These bulbs help you save energy and come in warm and cool colors and a variety of wattages.
$3,000 bonus: Think return on investment
Add a backsplash to your kitchen. Kitchen upgrades often have the highest return on investment when it comes to home improvements. If you have neutral cabinets and floors, opt for tiles with big, bold prints. Or buy peel-and-stick backsplash tiles, which are inexpensive and removable, but provide texture and interest to the room.
$5,000 bonus: Have fun with the big projects
Create a simple outdoor kitchen. An outdoor kitchen allows you to cook and enjoy your outdoor gathering at the same time. Try purchasing a pre-made grill island or structure that has countertops and storage space. Add a mini refrigerator and some outdoor furniture. Don’t forget proper outdoor lighting around your new party zone.
Contact a Mel Foster agent to find out what improvements will give you the greatest return on your investment.