Improving your home is a matter of measuring cost against gain. If you eventually want to sell your property, you need to make it as attractive to potential buyers as possible. While it may seem overwhelming to take out a loan worth 75%-85% of your property’s worth, think of the return. Santa Barbara homes are an investment that can provide a substantial return. For example, Santa Barbara homes purchased 25 years ago have quadrupled in value.
The value of many Santa Barbara homes can be increased exponentially by strategically planning a series of home repairs. Santa Barbara homes increase in value directly in proportion to the resources invested in them. Return on investment depends on the value of the house itself, the value of similar homes in the immediate area, and the rate at which property values are changing in the surrounding neighborhoods.
It is also interesting to note some improvements in Santa Barbara homes will add to the value of property more than others. For example, bathroom and kitchen repairs consistently increase the value of Santa Barbara homes. Adding a new heating or cooling system to a home will also produce a consistent return. However, refinishing a basement or hiring a landscaper is apt to provide the lowest increase in the worth of Santa Barbara homes.
Unfortunately, the types of repairs that add the most values to Santa Barbara homes usually cost the most, so it makes sense to explore several financing options to underwrite expenses. Several financing options are available for renovating your Santa Barbara home. If you have the equity to match your total project cost, a traditional home equity loan might be your best bet. If your improvements include making energy-efficient upgrades, you might also qualify for energy-saving loans through local utilities or related businesses.
Think of Santa Barbara homes as a considerable investment in your future. The equity and value that your home can provide to your net worth is inestimable. Exploring improvement and finance options for your home is time well spent, but don’t forget to include the intangible benefits of home improvement in your calculations. Adding a family room, for example, can immeasurably improve the quality of life for a growing family with young children. And when the Santa Barbara homes are finally sold, the equity is tax free. There are few other investments available that can make the same claim.
Lenny Gerthoffer has been helping people buy, sell, and finance real estate for over 16 years. Based in the heart of downtown Santa Barbara, Blue Star Real Estate is a full service company that also offers full service... (read more)