How to Increase Your Home’s Value Using a Second Mortgage
August 30, 2011Homeowners usually take out second mortgages to help them consolidate unmanageable debt; however, sometimes borrowers tap their home’s equity to help pay for home improvements. Unfortunately, many end up leveraging their home equity to pay for aesthetic alterations that add little value to their property.
While some improvements help to increase the value of a house, others do not. Before you consider a home equity loan, find out which home improvements can help increase your home’s value and provide you with even more equity in the long-run.
Top ten property improvements that pay you back
According to CNN Money, a service of CNN, Fortune and Money magazines, the following ten home improvements can add real value to your house.
1) Front entry doors – Not only do these add beauty to your home, they lower energy consumption.
2) Attic bedroom – Converting your attic into an extra bedroom can add big value to your home.
3) Decks – Adding a new deck is a relatively cheap way to extend your home’s living space.
4) Siding – New siding adds beauty and durability to your home’s exterior.
5) Kitchen – Even minor improvements can help add value to what many consider the heart of the home.
6) Windows – New energy-efficient windows also help to lower utility costs.
7) Bathroom – Minor additions and improvements in the bathroom, such as new hardware and countertops, can add value to your home.
8 ) Backup power generator – A small, compact generator can provide power to your home within seconds of a utility outage.
9) Basement – Turn your basement into a spare room, office or apartment to increase your home’s worth.
10) Additions – These can significantly increase the value of your home; however, if they can also price your home above the local market.
