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How to Protect the Investment Value of Your New Home

Your home purchase is the start of a long term investment that has the potential to build hundreds of thousands of dollars of wealth for you in the future.  But if you want to cash in on the funds built through this investment mechanism, either through a sale of the property or through a refinance, you'll need to make sure that your home value keeps up with the value of homes around it.  This requires that you do two things.

Maintenance

It doesn't matter what size or type of home you have, whether it's a small condo or a large ranch estate.  Every home requires some degree of maintenance.   This is one of the primary differences between owning a home and renting one.  If you own the place, you have to fix whatever breaks.

Some homeowners, due to a lack of funds or sheer laziness, often let minor repair jobs turn into major problems simply by ignoring them.  Make sure you take the time to maintain the value of your new investment through regular upkeep.

• Your home is real estate, and as such, its value lies almost entirely in its physical characteristics .  If the structure, paint job, flooring, pipes, or other features deteriorate, the value of your investment deteriorates, too.  Failing to keep up this investment would be like a business owner intentionally devaluing his or her own company stock options.  It doesn't make any sense.  You're just throwing money away.

Improvement

As the homes in your area age, many homeowners will decide to renovate certain rooms or add new features or amenities.  Remodels, even minor ones, can add significant value to your property.  Except in cases of extreme economic duress, these investments almost always pay off in the long run.  In other words, there's a strong chance you'll make a profit on the money you put into improving your home.

• Start by replacing the windows.  One of the fastest ways to increase your home equity is to have new windows installed throughout your home.
• Remodel your kitchen.  The kitchen is arguably the most valuable room in the home.  A bright, airy, functional kitchen with high quality cabinetry and wide countertops will make up for deficiencies elsewhere in the home.
• Renovate one or more bathrooms.  Second only to kitchens in the value they add, bathrooms are high on the list of best rooms to remodel.  If your home was constructed decades ago, your bathroom is probably the one space in the house that is most wanting for a contemporary touch.

Among these tips, one of the most beneficial steps you can take is to clean up the landscaping in your front yard.  Your curb appeal makes a huge difference to the value of your home in that it will help you sell that much faster.  In addition to this, air conditioning, patios and decks, and other lifestyle features also add significant value.

Follow this advice to maintain the value of the home you've just invested so much money into.  Depending on how swiftly your home value appreciates, you may even be able to pay your home loan off faster than initially assumed.  This can be very helpful if you're in an adjustable rate mortgage and plan to sell your home again soon.  Even if you've got a fixed rate mortgage, though, the benefits of maintenance and improvement are readily apparent.

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