In the last few years, there has been steady appreciation in the value of Canadian homes. This trend is likely to continue in the years to come. Because real estate is exempt from capital gains taxes, your home makes a wonderful investment that is almost guaranteed to bring excellent returns. Here are some tips on helping you raise the value of your home.
Overpay On Your Mortgage
Getting the mortgage paid off is the dream of every homeowner. If your finances allow, pay extra on your mortgage. Prepay or overpay as much as you can annually. You’ll get your home paid off faster and avoid paying as much in the long run in interest.
Budget And Don’t Overspend
Renovating is an excellent way to boost your home’s value. One of the mistakes lots of homeowners make when they renovate is that they overspend. In fact, statistics say that almost half of Canadian home owners spend double their allotted amount on renovations! Create a budget and stick to it when you’re renovating. Also check to see if there are any renovation grants you might be eligible for. Again, check both federal and provincial governments.
Manage Your Money
When buying a home, lots of people only think about the down payment and they don’t look ahead at the next few years. The result is that they blow all of their cash buying the house and then don’t have the cash when they need it later. But if you can’t make your mortgage payments, you’ll end up losing the greatest investment you’ll ever have. Be careful and manage your money well after you buy. Create a monthly budget with all expenses and all income and stick to it. Use budgeting software if it’s really tough for you.
Keep Saving
Finally, put together a reserve fund and keep saving in it. There will always be maintenance and repair needs along the way. When they pop up, you’ll need to take care of them immediately or else they can get worse. For example, roofing problems tend to get worse quickly if not attended to. If you have a reserve fund set up for routine maintenance and repairs, it won’t be a financial hardship to you when these needs occur.
Home owners should always have a plan for their home that extends at least 5 years into the future. Where will you be and what will you be doing then? Keep this 5 year plan in mind and keep saving your money. When it’s time to sell your house, you can get a great deal of money for it.
