Your home is one of your best investments, especially if you’ve lived there for decades. Now that the kids are gone and have their own homes, you might be looking forward to engaging in some badly needed home renovations. In 2023, it might not surprise that many home improvements revolve around saving energy and battling climate change.
But home renovations and improvements can run into tens of thousands of dollars very quickly, which begs the question, how will you pay for them? If you’re 62 or older, applying for a reverse mortgage is a great option. If approved, you can tap into all that equity you’ve been building up for years, which could result in hundreds of thousands of dollars.
You can take your proceeds in one lump sum payment or opt for equal monthly disbursements. The best part about a reverse mortgage is that you only need to pay it back if you move or die. Using this reverse mortgage calculator, you can find out how much of a reverse mortgage you will qualify for online.
But whether you are of retirement age or not, you will want to invest in home improvements that will enhance your property’s investment. According to a new article by U.S. News and World Report, with mortgage and home prices having more than doubled over the past year, fewer and fewer people are purchasing homes. They are choosing instead to remain in their homes while renovating and repairing their property to suit their needs better, wants, and lifestyles.
What home improvements are currently the most popular? Says the home services platform, Thumbtack, 9 out of 10 homeowners plan to renovate their homes in 2023, while many programs transform them into their dream homes. Here’s a sampling of home improvements to paying attention to in 2023.
Energy Upgrades
You don’t have to live under a rock to know that the price of energy had skyrocketed since January 2020, when the U.S. government purposely abdicated its energy independence. With that in mind, upgrades that will improve a home’s overall energy efficiency are crucial in 2023.
Energy upgrades not only reduce utility and energy bills, but they can offer a reprieve from high inflation. Also, the recent Inflation Reduction Act passed by Congress last year allows cash incentives for those who choose to go green. Many Americans want to cash in on those incentives before they expire.
Options for increasing your home’s energy efficiency are many. They include intelligent thermostats, better windows, high-grade insulation, solar panels, and vehicle chargers. In 2022 alone, the U.S. realized a 33 percent spike in solar panel installation.
Kitchen and Bathroom Upgrades
Renovations and upgrades to bathrooms and kitchens rank as the most popular projects. That’s because they not only deliver a high return on investment (ROI) but also improve the home’s look and functionality. Even minor kitchen and bathroom updates can significantly impact an ROI or so claims Remodeling Magazine.
Says one design professional, renovating a home’s kitchen and bathroom is always a favorite since you spend so much time in both spaces. The kitchen is also a great place to host gatherings. The more attractive and functional, the better. In the post-pandemic world, where many still work from home, the kitchen has become even more critical.
Necessary Cosmetic Repairs and Updates
With inflation through the roof (no pun) and recession looming, many U.S. consumers are cash-strapped. This means high-cost projects just aren’t possible for many property owners. For those who are cash poor and on tight budgets, 2023 will be the year they engage only in necessary repairs. Some of these repairs were put off in 2021 and 2022 due to the supply chain issues plaguing the U.S.
U.S. News and World Report state that a spike in demand for maintenance projects and repairs has been mainly ignored over the past couple of years. These include but are not limited to electrical outlet repairs, switch repairs, duct and vent replacement, emergency plumbing upgrades, interior and exterior painting, garage and sidewalk repair, roof shingle replacement, and more.
If you’re not planning to move out of your home in 2023 due to high interest and mortgage rates, do the next best thing. Improve the home you are presently living in.
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