Spring is the season for many joys. From the sunshine, warmer temperatures, flowers beginning to bloom, and hopefully a large tax refund. It’s enough to make you giddy with possibilities – no matter the size of your tax refund. While your tax refund is typically not sufficient to fund a major home improvement project such as a full kitchen remodel or a new addition, it can often provide enough cash for a down payment for a home remodeling loan or allow you to undertake relatively cheaper repairs and updates. According to the IRS, an average tax return in the year 2018 was $2,727. Spending your tax refund money on home improvements can put it to good use as it can enhance your comfort, convenience, and quality of life. So, if you want to invest your tax refund, here are 12 ways to invest in your home to secure a good return.
TAX REFUND UNDER $500
If your tax return is on the lower side of the average, you should not despair. There are still a lot of home repairs and improvements from deep cleaning and sealing of floor tiles to installing new showers that you can get done.
Install New Fixtures: Another way to enhance the space without spending a lot of money is by installing new fixtures such as shower, faucets, or knob changes to cabinets. The fixtures are small and may appear to be unnoticeable, but it is not true. Changing or upgrading fixtures can impact the look and appearance of the whole space. Therefore, if you are bored with your cabinet knobs or your shower is clogged, it is time to change it for good.
Add curb appeal: Adding or updating some of the essentials, like a new mailbox, some flower boxes, new house numbers, outdoor lighting, and shrubs, can give your home a face-lift. Take your exterior upgrades to the next level by painting or installing a new front door. Overall a home with excellent curb appeal will, on average, net a return of roughly 150% according to HGTV’s “Curb Appeal” host John Gidding.
TAX REFUND UNDER $1000
Give your ceiling a lift: Ceilings are easy to overlook, but revamping yours is an inexpensive way to add interest to a room. Got popcorn ceilings? Hire a professional to scrape them smooth, install crown molding or box beams for a fresh look, and/or apply a simple coat of fresh paid to complete the transformation.
Update your home’s lighting: Save some energy this year by swapping out your incandescent bulbs for LEDs. LEDs come in warm and cool colors with all sorts of wattages available. Does your entryway or dining room have flush-mount fixtures? Swap them out for chandeliers. Chandeliers will bring the light down and make the light more purposeful while aesthetically dressing up the room.
Repaint interior rooms: Most homeowners want a trendy home, but often times budget restrictions do not let it happen. But, if you want to upgrade your home both aesthetically and functionally, you should think about investing your tax refund in interior painting. If you plan to paint the rooms yourself, you can save the labor cost as well. Make sure to check the latest trends and home fashions to select paint colors and finishes for the bedroom, kitchen, bathroom, and living room. It will not only change the characteristics of the space but will also fix any cracks or chip offs that can happen while enjoying your home.
TAX REFUND UNDER $2000
Treat your home to wood flooring: You can expect to pay anywhere from $10 to $12 per square foot for quality wood looking vinyl plank flooring – potentially more if you choose true hardwood installation. According to the National Association of Realtors, 54% of home buyers are willing to pay more for a home with hardwood flooring. While wood flooring can be expensive initially, experts say that the return on investment can return up to 2.5% its cost when you sell, so it is worthy of every penny spent.
Install Kitchen Backsplashes: While a complete kitchen renovation takes time and money which is not possible for the tax refund. However, updating your kitchen can be done in steps. If you are satisfied with your kitchen cabinets, a tiled backsplash can completely transform your kitchen space and cost you a small fraction of the overall kitchen overhaul. Ceramic titles start at $2 per square foot while the metal and glass tiles are expensive costing $7 to $20 per square foot.
TAX REFUND UNDER $3500
Install new bathroom flooring: Bathroom floors tend to get dirty and broken quickly due to high traffic and high moisture. The moisture content in the air can cause a slimy layer of the floor. While we all know cleaning is mandatory, that slimy layer of dirt and grime can cause the sparkle and shine to dissipate over time. Humidity in your bathroom can also cause tiles to break, corners to chip off, and grout to wear off. A tax refund of this size can help you get a new bathroom floor. Costing an average of $800 to $2000, you can choose the right floor material according to your needs.
A professional installation will aid in longevity when selecting quality products.
Build a deck or enhance the one you have: While the cost of your deck will vary based on size and details, it is a favorite feature for homeowners and homebuyers. A deck is listed as the most common amenity mentioned in Trulia listings across the U.S, with 22 states claiming it. It’s not a huge surprise that decks are so popular, though, considering they bring in an 80% to 120% return on your investment.
TAX REFUND OVER $5000
Insulate your home: According to the U.S. Department of Energy, heating and cooling account for 48% of an average home’s total energy usage, making it the largest expense for more homes. Poor insulation can cause major air leakage, making your home less comfortable and unnecessarily throwing money out the window every month. The most important area to insulate is your attic – As hot air rises, pumping heat through your home during the winter, a lot of air is able to escape through your roof via the attic without quality insulation. On the flip side during summer months, heat is able to seep into your home through the roof and attic without it. For more important information pertaining to the insulation of your home check out our previous blog.
Remove the draft with new windows and/or doors: An average home loses up to 15% of its heating and cooling energy through air leaks around windows and doors. A recent study by EnergyStar revealed that by switching out your single-pane or even your newer double-paned, clear glass windows to energy-efficient windows can save you up to $465 a year in energy costs.
Upgrade your roof: While your tax refund may not cover the whole tear off and installation cost, large tax refunds cover a big chunk. If your roof is older or you see signs of damage that need repair, call Avalon Building Concepts for a complete understanding of what is happening to your roof.
YOUR TAX REFUND
Regardless of what you choose to spend your tax refund on, it is a reward for your honest and hard-earned money. Spending your tax refund on home improvements can be a great way to improve the quality of life as well as enhance the value of your property. We are always happy to help you with professional services and quality home improvement products if you should need a hand.
Avalon is a four-time GAF President’s Club Award winner. We are the WOOD TV 8’s Roofing Expert, Mastic Preferred Contractor, and a member of the Home Builders Association of Greater Grand Rapids. Avalon Building Concepts also gets recognized for customer service as an Elite Service Professional on Home Advisor. We have an A rating with the Better Business Bureau, and A rating with Angie’s List to go along with Super Service Awards in 2015, 2016, 2017, and 2018.
With more than 30 years of experience, fair pricing, job – site professionalism, and on-time appointments, Avalon continues to satisfy homeowners in the Grand Rapids and surrounding areas. Avalon provides homeowners with high-quality services using top-notch materials to create dependable home improvements. Which allows us to live up to its motto “Trusted, Together, Today. Siding, roofing, insulation and window replacement are just a few of the ways that Avalon Building Concepts adds value, beauty and comfort to customers homes. Call 616-871-2507 or click here to schedule a free in-home estimate for your next home improvement.