Whenever you remodel your bathroom, update your kitchen, put a new roof on your house, or do some other major home improvement project, you are improving the quality of your everyday life.
But what most homeowners don’t realize is that they also are making an investment in their future financial security — one that potentially can pay them huge dividends down the line.
Long-Term Financial Security
For most people, their biggest asset is their home. After their mortgage is paid off and they own the deed to their home and property, it’s usually one of the most valuable things they have in their name.
Unlike cars, houses and property don’t usually depreciate over time. No matter how well you maintain it, eventually you are going to have to replace your car. But you can live in your home for the rest of your life — and give it to your children or grandchildren to live in after you are gone.
So it makes sense to invest in the value of your home by occasionally making improvements, such as gutting and replacing an outdated bathroom, putting new cabinets in your kitchen, or waterproofing your basement so that the foundation doesn’t get damaged by moisture.
Adding to Your Home’s Value
All of these projects generally require a substantial investment. You may even need to take out a home improvement loan or go into debt in order to pay for them.
But once that debt has been paid off, the financial benefits are enormous. Upgrades such as these can increase the resale value of your home, sometimes in excess of what you paid for the improvements in the first place.
And even if you never resell your home and live in it for the rest of your life, you can enjoy the benefits of these improvements day after day.