The market in which you live plays a large role in your return on investment (ROI) when it comes to your property purchase, however there are some quick tips to keep in mind during the time owning your home that may help increase it's value and decrease the principle that you owe on your mortgage.
1) Realtor Knows Best - Your realtor will have first hand information on what buyers like when it comes to features and aesthetic appeal inside the home. Ask their opinion for small projects you can tackle once you move into your house. Perhaps it's improving the kitchen by upgrading the cabinetry, or refreshing the bathroom with a new vanity, or finishing an unfinished basement. Those areas of the home are high traffic and buyers will focus on them. During the time you own your home, keeping these areas updated and finished will help increase it's value when it comes time to sell.
2) Keeping Up with the Jones' - If your neighbours have taken steps to improve the look of their property or exterior curb appeal of their home, it may be time for you to follow suit. This could include new asphalt on the driveway, upgraded roof, landscaping, etc. There is something to be said about keeping up with the Jones in terms of competition within the marketplace. Buyers can't help but compare a house to others in the neighbourhood.
3) Extra Mortgage Payments - Some mortgages may allow you to make an extra payment(s) throughout the year without penalty. Extra payments go directly toward the principle to reduce the amount you owe at the time of maturity! If you can afford to make at least one extra payment per year on your mortgage, it will mean a larger margin of return when it comes time to sell and possibly save you money on interest.
4) Payment Frequency - If your lender offers accelerated bi-weekly payments, and that payment schedule works well with your budget, it will add additional money towards your principal versus monthly or bi-weekly payments. In addition to an extra mortgage payment each year, this strategy will also help reduce the principal of your mortgage. Click here for more information on accelerated bi-weekly payments.
5) Go Green - Going green by including mainstream alternative heating sources, such as a heat pump, a few solar panels or energy efficient wood stove could help save you money on heating as well as increase the value of your home when it comes time to sell. Buyers are also interested in saving money on utilities and may be interested in paying more for the home for the possibility of saving over the long term. Be sure to consult your realtor to learn if buyers in your area are interested in these features.
There are many other ways to increase your return on investment when it comes to real estate! My best advice is to keep it simple. We've all seen those homes that are completely decked out and decorated to the nines - that only appeals to a certain segment of the population. Invest in small improvements over time, seek the help of professionals, and when it comes time to sell your home you'll be in a good position to possibly increase your return on investment!
Want to chat about your mortgage? I'd love to hear from you!
sarahnm@mortgagegroup.com
1-844-315-6609 Toll-free, rings direct to my cell.