Home improvement loans are offered by banks, online lenders and credit unions.
Unlike home equity loans, home improvement loans are generally not tax deductible.
If used for projects that substantially improve your home, you may be able to deduct the interest on a home equity loan from your taxes.
Home improvement loans generally aren’t eligible for federal tax deductions, even when used for eligible renovations or property improvements. Unlike home equity loans, which can be tax deductible, home improvement loans are unsecured debt, rendering them ineligible for tax credits.
Home improvement loans vs. home equity loans
Although home improvement and home equity loans may sound similar on paper and can be used for the same purpose, it’s important to understand the differences between the two categories.
If you turn to a home improvement loan to finance your next project rather than an equity loan, you could leave thousands of dollars in tax deductions on the table.
Home improvement loans
A home improvement loan is offered by online lenders, banks or credit unions and functions as a personal loan. Borrowers must meet the lender’s requirements to get approved and receive the funds in a lump sum. While lenders typically require good credit, some provide bad credit home improvement loans.
Most lenders offer repayment timelines between two and five years and can come with fixed or variable interest rates based on your creditworthiness. In short, home improvement loans are unsecured personal loans specifically marketed toward borrowers looking to finance renovations.
Unsecured loans or debts (like personal loans for home improvements) aren’t secured by a house or property. Therefore, they’re not eligible for the tax credits, even if the funds are used for eligible projects or improvements.
Home equity loans
Home improvement loans and home equity loans are in two different categories for a number of reasons. For one, home equity loans are secured — backed by the home — and allow you to tap into the equity you’ve built up in your home over time.
Also called a ‘second mortgage,’ these loans and lines of credit tend to have stricter usage restrictions and are higher risk. If you fail to make the payments, you run the risk of losing your home. Home equity loans and lines of credit (HELOCs) are a few of the most popular secured debts and qualify for tax deductions.
Home loans that are tax deductible
As a rule of thumb, if your home or property doesn’t back the loan, it doesn’t qualify for the tax interest deduction. However, if you’re looking to finance a specific renovation, consider a home equity loan or line of credit.
Home equity loans
A home equity loan allows you to borrow against the equity — the portion of the home you’ve already paid off — built up in your home. They typically have fixed interest rates and repayment terms of up to 30 years, but most lenders allow the borrower to choose a repayment plan.
How much you can borrow will depend on the lender and how much equity you’ve built up over time. However, many lenders cap the amount you can borrow between 80 to 85 percent of your home’s equity.
If used for projects to substantially improve your home, you may be able to deduct the interest from your loan on your taxes, even if only a portion of the balance went toward the home.
Home Equity Lines of Credit (HELOCs)
HELOCs also allow you to borrow against the equity you’ve built up over time, but rather than dispersing the amount in a lump sum, a HELOC allows you to withdraw funds over time.
Borrowers can take out how much they need when they need it. The interest is eligible for a tax credit when used for eligible projects. Because of this, HELOCs can be a great way to finance an ongoing home improvement project.
Deduction-eligible home equity loan uses
Not all home improvement projects qualify for a tax deduction, even if you use a home equity loan for financing. It’s not likely that you’ll see any interest deducted for smaller projects, like updating your kitchen cabinets or installing a patio.
The IRS has specific parameters around what qualifies as eligible. Check the specific home improvement details and deadlines before banking on a significant return this tax season.
Home office deductions
If your residence is your primary workspace, you may be able to deduct certain home office improvements or purchases. This applies to homeowners and renters residing in any home or utilizing a free-standing structure for their business. Employees will not qualify, even if they meet the other requirements.
The term “home office” is more of an umbrella term as personal property also may qualify. Among others, Boats, RVs, mobile homes and unattached garages, studios or barns fall under this category if used strictly for business.
In order to qualify, the IRS states that:
You must use a specific part of your home strictly for business purposes.
Your home (or structure) is your principal place of business, or if administrative tasks can only be performed on your property.
If you work on a hybrid schedule and only work from home a few times a week, it likely won’t qualify. “If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home,” an IRS resource page reads.
Medical-related home renovations
The installation of specialized household equipment for medical care to support you, your spouse or your dependent may qualify for a tax break, but only if the additions fall within certain parameters.
For example, the value of the property must not be increased by the renovation for the entire cost to be considered a taxable medical expense. Such improvements may include:
Widening hallways and doorways.
Adding ramps or lifts to accommodate for a wheelchair.
Modifying stairwells.
Lowering (or modifying) kitchen appliances, cabinets or household electrical outlets.
Any amount paid (or borrowed) for medical upkeep and operation also qualifies as long as the funds are used strictly for medical purposes and the installation of a specialized plumbing system for a person with a disability.
If you’re unsure whether your renovations qualify, consider the primary function of the addition and the potential value-add it gives your home. “Only reasonable costs to accommodate a home to your disabled condition are considered medical care,” the IRS tax resource reads. “Additional costs for personal motives, such as for architectural or aesthetic reasons, aren’t medical expenses.”
Energy efficient installations
If you’ve installed energy efficient equipment — think solar panels, energy efficient windows, skylights and doors, biomass equipment or small wind turbines — then you may qualify for a tax break on your next return.
Also called the residential clean energy property credit, qualifying eco-friendly renovations made after Dec. 31, 2021, and before Jan. 1, 2033, are eligible for a tax credit totaling up to 30 percent of the equipment costs. Any expenditure made in 2033 can result in a 26 percent maximum tax credit and a 22 percent maximum credit for property placed in 2034. There will be no credit available for renovations made Dec. 31, 2034.
What constitutes a qualifying cost when calculating the deduction percentage will vary based on the type of eco-friendly equipment you’ve had installed. There’s also a $1,200 aggregate yearly tax credit maximum for home components, energy audits and energy property, while qualifying heaters, stoves and boilers have a separate $2,000 limit.
Which is better: home equity or home improvement loans?
While there isn’t a ‘right’ answer as to which product is better, there are projects that are better suited for certain projects. For example, home improvement loans are best for smaller projects that don’t qualify for tax deductions, especially if you don’t have significant home equity built up.
For larger and longer renovations, HELOCs may be the better option for qualifying borrowers. Home equity loans are well suited for long-term homeowners with less strenuous projects that qualify for tax credits.
Precious metals have captured the attention of investors for centuries, not only for their alluring beauty but also for their potential as a valuable asset. Whether you’re intrigued by the gleam of gold, the sheen of silver, or the rarity of metals like platinum and palladium, the world of precious metals investing offers a diverse and captivating landscape to explore.
While investing in precious metals may seem intimidating at first, understanding the basics can help you make informed decisions about your investment strategy. From the different types of precious metals available to the various investment vehicles and strategies, this beginner’s guide will provide you with a solid foundation to begin exploring this captivating investment opportunity.
Precious metals have held an allure for thousands of years, treasured not only for their beauty but for their unique physical properties. The high economic value of these metals, coupled with their distinct characteristics, makes them essential in various sectors, including the jewelry industry, electronics, industrial products, and the computer industry.
Gold
Gold is perhaps the most well-known precious metal, treasured by civilizations across history for its malleability, beauty, and resistance to tarnish. Today, gold is not only used in jewelry but also in electronics and other industrial applications due to its excellent conductivity.
Silver
Silver, while less expensive than gold, is highly valued for its unique properties. It has the highest electrical and thermal conductivity of all the elements, making it indispensable in the electronics industry. Silver is also used in solar panels, batteries, and various industrial applications.
Platinum and Palladium
These are part of the platinum group metals, prized for their exceptional resistance to heat, chemical attack, and electrical erosion. They are used extensively in the automotive industry, jewelry making, and numerous industrial applications.
Investing in precious metals provides several potential benefits, making them an enticing addition to any personal finance strategy.
Hedge against Inflation: Precious metals, particularly gold, have been used as a hedge against inflation for centuries. When fiat currencies are losing value due to inflation, gold prices often rise, preserving the purchasing power of the investor’s capital.
Wealth preservation: Precious metals, being tangible assets, have been used for wealth preservation across history. Unlike paper money, physical gold or silver cannot be devalued by government actions or economic downturns, making them a valuable asset in times of economic uncertainty.
Market volatility buffer: Precious metals often move counter to the stock market, making them an ideal investment for mitigating risk during times of turbulence.
Investing in precious metals can provide balance to your portfolio, potentially offering protection and positive performance during periods of economic stress.
There’s more to investing in precious metals than buying gold bars or silver coins. Here are some of the ways you can add precious metals to your portfolio:
Physical Bullion
Physical bullion includes gold and silver coins, bars, and rounds. When you buy physical precious metals, you’re making a direct investment and gaining ownership of a tangible asset. This option appeals to many investors who appreciate the security of holding their wealth in a physical form that has intrinsic value.
However, owning physical metals comes with considerations such as storage and insurance costs. You’ll need to secure your investment either in a home safe or a deposit box at a bank or private facility, each option with its advantages and disadvantages.
Precious Metal ETFs and Mutual Funds
Precious metal exchange-traded funds (ETFs) and mutual funds offer a way to gain exposure to the precious metals market without the need to physically store the metals. These funds typically track the price of a specific metal or a group of metals.
Mining Stocks
By buying shares in a mining company, you’re investing in the operation that extracts the precious metals from the ground. Mining stocks can offer higher potential returns than investing in physical metals or metal-tracking funds, but they also come with greater risk.
These risks include operational risks at the mining site, geopolitical risks in the countries where mines are located, and market risks related to fluctuations in the prices of the underlying metals.
Futures Contracts and Other Financial Instruments
Futures contracts allow you to buy or sell a specific amount of a precious metal at a predetermined price at a set date in the future. These instruments can be used to hedge against price fluctuations or to speculate on future price movements.
Other financial instruments, such as options and certificates, can also be used to invest in precious metals, but these can be complex and are typically recommended for more experienced investors.
Buying and Storing Precious Metals
When it comes to buying precious metals, the process can be as simple as visiting a local coin shop or making a purchase online. However, there are several key factors to consider:
Choosing a Dealer
Reputation is critical when choosing a dealer for your precious metals purchase. Look for businesses with a long track record, positive customer reviews, and a commitment to transparency in their pricing. Keep in mind that while precious metals themselves are not subject to counterfeiting, the products made from them can be, so it’s essential to buy from reputable sources.
Understanding Premiums Over Spot Price
When you buy precious metals, you’ll often pay more than the current market price, or “spot price,” of the metal. This difference is known as the “premium” and covers the dealer’s expenses and profit margin. Premiums can vary depending on the product; for example, a gold bullion coin may have a higher premium than a gold bullion bar of the same weight due to the additional cost of minting the coin.
Buying Process
Depending on the dealer, the buying process may involve placing your order online or over the phone, followed by payment through bank transfer, check, or credit card. Be aware that using a credit card may involve additional fees. After payment, the dealer will ship your precious metals to you, with the shipping method and insurance coverage varying by dealer.
Storage Options
If you’re investing in physical precious metals, you’ll need to consider where to store them. At home, a high-quality safe can provide protection, but it may also make your home a target for thieves. Storing your precious metals in a bank deposit box provides an extra level of security, though access to your metals is limited to the bank’s hours, and the contents of the box may not be insured by the bank.
Private storage facilities, sometimes called private vaults or depositories, offer another option. These facilities offer high-security storage for precious metals, often with 24/7 monitoring, insurance coverage, and the option to visit and inspect your holdings.
Selling Precious Metals
Knowing when and how to sell your precious metals is just as important as knowing how to buy them. Here are a few points to keep in mind:
Timing Your Sale
While there are many theories about the best time to sell precious metals, the reality is that the optimal timing depends on your individual circumstances and financial goals. It can be helpful to set a target price or return percentage at which you’ll sell your metals and to review this strategy regularly based on market conditions and your financial situation.
Finding a Buyer
Most precious metals dealers also buy metals, and selling to a dealer can be a convenient option, particularly if you’re selling a common product like a gold coin. However, dealers will typically offer to buy your metals at below the spot price, as they need to account for their costs and a profit margin when they resell the metals.
Online marketplaces and auction sites can offer another way to sell your metals, potentially allowing you to reach a larger pool of buyers and secure a higher price. However, these platforms also involve fees and potentially longer transaction times.
Tax Implications
In many jurisdictions, selling precious metals can trigger capital gains tax implications. The tax treatment can depend on several factors, including the type of metal, the form of the metal (coin, bar, etc.), how long you’ve held the metal, and your total gain or loss on the sale. It’s essential to consult with a tax professional to understand the potential tax implications of your sale.
Risks and Challenges in Precious Metal Investment
While investing in precious metals can offer several benefits, it also comes with its own unique risks:
Price volatility: Like other commodities, precious metals can experience significant price fluctuations. While these fluctuations can offer the potential for high returns, they can also lead to substantial losses.
Lack of cash flow: Unlike stocks that may pay dividends or bonds that pay interest, precious metals do not generate cash flow. Any return on your investment will come from selling the metal at a higher price than you paid for it.
Storage and insurance costs: If you choose to invest in physical precious metals, you’ll need to consider the costs of storing and insuring your metals. These costs can eat into your returns, particularly if you’re investing a small amount.
Counterfeit products: Although it’s rare, there is a risk of counterfeit products in the precious metals market. This risk can be mitigated by purchasing from reputable dealers and having your metals tested by a professional if you’re unsure of their authenticity.
Despite these challenges, many investors find that the potential benefits of investing in precious metals make them a valuable addition to a diversified investment portfolio.
Precious Metals in Portfolio Diversification
Precious metals can play a key role in a diversified investment portfolio. Their tendency to move independently of other asset classes can provide a buffer against market volatility. While the percentage of precious metals in a portfolio can vary greatly depending on individual investment objectives and risk tolerance, some financial advisors suggest an allocation of between 5-15% towards precious metals.
It’s important to remember that diversification does not ensure a profit or protect against a loss, and past performance of precious metals is not indicative of future results. It’s always a good idea to consult with a financial advisor to help determine the most appropriate asset allocation for your individual circumstances.
Precious Metals and Global Industry
The demand for precious metals extends beyond individual investors and central banks. These metals play a crucial role in various industries globally.
Gold, for instance, is highly valued in the electronics industry for its excellent conductivity and resistance to tarnish. Silver’s unique properties make it indispensable in the production of solar panels, batteries, and various industrial applications. Platinum and palladium are critical in the automotive industry for their use in catalytic converters, helping to reduce harmful emissions.
As technological advancements continue, the industrial demand for precious metals may potentially increase, influencing market prices.
Precious Metals and Retirement
Precious metals can also play a role in retirement planning. Certain types of Individual Retirement Accounts (IRAs) allow for the inclusion of physical precious metals, known as “Gold IRAs” or “Precious Metals IRAs.”
These IRAs can provide a way to gain the potential benefits of precious metals while enjoying the tax advantages of an IRA. However, there are specific rules and regulations regarding which precious metals can be included in these IRAs, and how they must be stored.
Before adding precious metals to a retirement account, it’s important to understand the potential risks and rewards and to consult with a financial advisor and a tax professional.
Final Thoughts
Investing in precious metals can be a valuable part of your overall financial strategy. As with any investment, it’s crucial to do your research, understand your investment objectives, and consider consulting with a financial advisor.
In the ever-evolving world of precious metals, continual learning and staying abreast of market trends is key. While no investment is risk-free, these rare metals, with their rich history and diverse industrial uses, offer unique opportunities for those willing to pursue their lustrous allure.
Whether it’s the glint of gold, the shine of silver, or the rarity of other metals like platinum and palladium, the precious metals market offers a fascinating way to diversify your portfolio. And they can potentially protect against volatile markets and inflation, and invest in a tangible asset with enduring value.
In the end, the choice to invest in precious metals is a personal one. It’s about understanding the market, acknowledging your risk tolerance, and aligning your investment strategy with your financial goals. The key to investing in anything successfully lies in knowledge, diversification, and patience.
No matter your interest rates or cash flow, your retirement account or your credit risk, the world of precious metal offers a robust platform for investment purposes. Remember, past performance is not indicative of future results, and every investment strategy comes with its own unique risks. But with careful planning and wise decision-making, you can make the most of what precious metals have to offer.
Whether you’re buying gold bars, investing in mining companies, tracking the gold industry, or just diversifying your portfolio with a valuable asset, there’s a place for you in the world of precious metals investing.
From gold coins to silver prices, from market volatility to economic uncertainty, the precious metals sector offers a world of opportunities. And as the world continues to evolve, so too will the role of precious metals in our lives and in our portfolios.
Investing in precious metals is not just about protecting against potential economic collapse, but also about participating in the growth and technological advancements of global industries. It’s about owning a piece of history, a tangible asset that has served as a symbol of wealth and power for thousands of years.
So, as you contemplate whether to invest in precious, remember the words of ancient Greek playwright Aristophanes, “Gold bestows honor, gold inspires deeds, gold characterizes the highest.” May your journey into investing in precious metals be a golden one.
A newly renovated residence with a killer location and impeccable interiors has recently landed on the market in Miami Beach, sporting a hefty $18 million price tag.
But it has plenty of attributes to justify its premium pricing, including an exceptional location on a private peninsula that comes with unmatched panoramic views of the Atlantic Ocean from nearly every room of the house.
Nestled on the corner of the guard-gated community of Biscayne Point Island at 1137 North Biscayne Point Road, the property’s coveted location also offers convenient access to some of Miami’s most iconic spots.
Key numbers & facts
Location: 1137 North Biscayne Point Road, Miami Beach, FL
Bedrooms: 4
Bathrooms: 5
Square footage: 5,077
Year built: 1955 (extensively renovated in 2023)
Lot size: 0.29 acres
Amenities: Great Room with 25′ high ceilings, custom finishes imported from Europe, wine cellar, a primary suite with huge walk-in closets
Other structures: two boat docks, jet ski lift, summer kitchen in the backyard
Asking price: $18,000,000
Listing agent: Nancy Batchelor
The residence, following a comprehensive 4-year renovation completed in 2023, showcases elegant interiors designed by Deborah Wecselman.
A former Senior Director of International Store Design for Ralph Lauren, a role she’s held for 12 years, Wecselman played an instrumental role in designing over 5,000 flagship stores and shops globally.
Deborah Wecselman’s move to Miami marked a new chapter in her career, leading her to establish WECSELMAN DESIGN, a lauded interior design firm recognized both nationally and internationally for creating high-end, unique interiors.
And 1137 North Biscayne Point Road’s interiors are a testament to Wecselman’s distinct, elegant style, as we’re about to see.
The home features a Great Room with soaring 25-foot high ceilings and sliding doors that recess completely, blurring the lines between the indoor and outdoor spaces.
The entire home is designed to maximize the stunning ocean views, with each room offering a picturesque seascape.
High-quality custom finishes imported from Europe can be found throughout the home, along with gleaming wood floors and a state-of-the-art wine cellar.
The primary suite is a highlight, featuring expansive walk-in closets and a luxurious bath with a soaking tub and dual vanities.
True to its waterfront essence, the property’s backyard is an entertainer’s paradise.
Outdoor amenities include a pool, a summer kitchen for alfresco dining, a putting green, and not just one, but two boat docks. Additional amenities like a jet ski lift enhance the outdoor experience, making it perfect for both relaxation and hosting events.
Reflecting modern standards, the house is equipped with impact windows and doors, solar panels, and a carport complete with a Tesla charging station, underscoring the property’s commitment to sustainability without compromising on luxury.
The location on an ultra-private peninsula with 360′ of water frontage makes this property a haven for boating enthusiasts.
The two docks offer ample space for boats and provide exceptional wide bay sunset views, making it a rare find in the Miami real estate market.
>> Follow Fancy Pants Homes on MSN for more stories like this
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With its world-class golf courses, scenic beauty and natural landscapes, and high degree of privacy and exclusivity, the small coastal residential community of Pebble Beach is a magnet for affluent homebuyers.
And said deep-pocketed buyers have more choices to pick from, as a meticulously renovated private estate — sitting on a generous 3.16-acre lot — has recently landed on the market.
Priced at a hefty $39,000,000, the Pebble Beach property is currently the most expensive active listing in the unincorporated community on the Monterey Peninsula. And it has all the attributes to back its sky-high asking price.
Owned by WeatherTech founder and CEO (and automotive accessories tycoon) David MacNeil, the Pebble Beach estate is as impressive as its price point would imply.
Built in 2000 and fully renovated in 2023, the property has nearly 7,500 interior square feet on a 3.16-acre lot and includes seven bedrooms, eight full bathrooms, and two half-bathrooms.
“I was fortunate to purchase this property at the beginning of the pandemic before the prices of properties had skyrocketed,” MacNeil says, before commenting on the property’s extensive renovation spearheaded by Monterey-based Holdren + Lietzke Architecture.
“This home has been modernized and opened up with more windows and access to the outside. It was renovated from top to bottom, both inside and outside with the finest finishes by Monterey-based Holdren + Lietzke Architecture,” MacNeil added.
Inside upgrades include the addition of a chef’s kitchen with custom cabinetry, three dishwashers and Wolf appliances, a 1,000-bottle temperature-controlled wine room, a laundry room with three sets of Miele commercial-grade washers and dryers, a billiards room, custom walnut and stone floors, and six fireplaces.
In addition, the property was updated with a copper roof, a backup battery system, a Lutron lighting system, an Axis security system, and geothermal heating and cooling systems.
The outdoor recreational areas have not been overlooked in the renovation process.
See also: You can buy the house Jennifer Aniston rented while filming ‘Friends’
Extensive landscape design completed in 2023 included adding a 30,000-gallon water collection and storage tank to reclaim water for landscaping use.
There’s also a built-in BBQ, dining and seating areas, hot tub, lower yard with putting green, tournament-ready bocce ball court with two firepits and built-in seating, and a pergola with solar panels.
Why would the WeatherTech founder part ways with his beautifully updated Pebble Beach house?
Talking about his decision to sell, MacNeal shares “Since I predominantly use another property in the vicinity when I spend time on the West Coast, I have made the difficult decision to put this property on the market for the next owners to thoroughly enjoy. The real estate market is lacking properties and I feel fortunate that I can pass this one on to someone else who can share it with their family and friends.
And he picked the best local realtor to find the right buyer.
The property’s real estate agent — Tim Allen of Tim Allen Properties Team, affiliated with Coldwell Banker Realty — is no stranger to selling multi-million dollar homes in the area for record amounts.
With nearly four decades of real estate sales experience under his belt, Allen was the #2 individual Coldwell Banker agent for 2022 sales (out of approximately 100,000 agents worldwide) and helped close some of 2023’s biggest real estate sales for the area, including the $29 million sale of the Butterly House in Carmel-by-the-Sea and the $22 million sale of architect Frank Lloyd Wright’s only oceanfront home in Carmel.
“The ultra-luxury market on the Peninsula remains strong, and we were fortunate to represent the buyers in two other iconic, historic local sales in 2023, a Frank Lloyd Wright-designed house and The Butterfly House, the latter of which was a record high for Carmel-by-the-Sea,” Allen says.
And he seems confident that the Pebble Beach house will also sell for top dollar.
“This architectural masterpiece provides a stunning setting for relaxation and magnificent views from its coastal Pebble Beach location. The house and property were completely reimagined and rebuilt to the highest quality, offering something unique and special to the market that had not been previously available,” the real estate agent adds.
Situated near the famous Pebble Beach Resorts, this property offers stunning views of Carmel Bay, Point Lobos, and the Pacific Ocean. Its location provides easy access to renowned golf courses, exclusive clubs, and the village of Carmel-by-the-Sea.
And just in case potential future owners need an extra reason to move to this idyllic area, we hear Brad Pitt lives nearby, in the historic DL James house (which also commanded a sale price somewhere around the $40 million mark).
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We’re well into the 2020s now, and many apartment communities are getting with the times by adding eco-friendly amenities to units. This is a clear win/win for everyone involved — the renter, the property manager and Earth as a whole. If only all decisions were so clear-cut!
Green amenities for eco-friendly renters
The list of available eco-friendly amenities is constantly growing and changing. Here are a few of the most common green features that renters can find during their apartment search.
1. Non-smoking buildings
Cigarettes and their smoke are not only bad for people’s lungs — they’re also terrible for the planet, too. Toxic cigarette butts are not only unsightly litter but they also pollute the land, water and air with nasty chemicals. E-cigarette waste is now also a growing concern.
To protect people and the planet, many apartment communities are designating all or some buildings as “non-smoking.”
Featured communities that offer non-smoking buildings:
2. On-site recycling
One would certainly hope that in this day and age on-site recycling is a given, but not all apartment communities offer it.
Definitely check to see if this ultra-important amenity is available. If not, inquire with your landlord about how to get it started!
Featured communities that offer on-site recycling:
3. ENERGY STAR® certified appliances
If an appliance dies nowadays, chances are good that the apartment community will replace it with an ENERGY STAR® certified version. The federal government backs such models because they provide the necessary function (dishwashing, clothes drying, refrigeration, etc.), but in a more energy-efficient manner.
Although these models are more expensive up front, they actually save the landlord money over time because it costs less to power them. In fact, 2019 alone saw ENERGY STAR products save about $39 billion in energy costs.
Featured communities that offer ENERGY STAR® certified appliances:
4. Certified efficient windows
Another in the portfolio of ENERGY STAR products certified efficient windows can save money and lower greenhouse gas emissions. Replacing single-pane windows can save $101 to $583 per year and thousands of pounds worth of carbon dioxide!
Featured communities that offer certified efficient windows:
5. Electric vehicle charging stations
Electric vehicles are finally on the upswing in the U.S. Savvy apartment communities are adding EV charging stations to their list of amenities to attract eco-minded renters. This is a big deal because the majority of charging happens at home, rather than at public charging stations.
So, if a community can’t accommodate a potential renter’s car charging needs, the tenant will keep looking until they find a place that can.
Featured communities that offer EV charging stations:
6. Solar panels
It wasn’t that long ago that solar panels were too expensive for anyone but the very affluent to afford. Now, they’re coming down in price and many apartment communities are taking advantage.
Although installation still isn’t cheap, over time solar installations save a lot of money on utility costs. Then, of course, there are the environmental benefits, like lower levels of greenhouse gas emissions and other harmful pollutants.
Just be aware that this eco-friendly amenity often comes with higher rent prices to cover the installation cost, so you’ll probably pay more for peace of mind.
Featured communities that offer solar panels:
7. LEED certification
More common among brand-new or newly renovated properties, LEED (Leadership in Energy and Environmental Design) certification is a green building rating system used all over the world.
To get LEED certification a property must meet a bunch of standards, designed to improve indoor air quality, reduce pollution, limit exposure to chemicals and lower energy consumption, among others. The typical renter pays up to 20 percent more per month on rent for these green upgrades, but definitely reap the physical benefits, so there’s that.
Featured communities that offer LEED certification:
8. Smart thermostats
Here’s one eco-friendly amenity that isn’t pricey at all to install. Smart thermostats take the guesswork out of heating and air conditioning.
For one, they sense once you’ve left the building and adjust the temperature setting accordingly (no sense paying to overly heat a space no one’s occupying at the moment). You can also easily set a schedule and check on or adjust it remotely.
All of these perks mean that energy is saved (not to mention the dollars saved for whoever pays the bill too).
Featured communities that offer smart thermostats:
9. Upgraded HVAC filtration
HVAC systems have come a long way in recent years. So when the old ones die (or become woefully inadequate) property managers often opt to replace them with upgraded versions. An ENERGY STAR-certified system is ideal because they are 10 to 15 percent more efficient than the unrated versions. Every bit of efficiency saves money and energy because it more seamlessly cools and heats the space.
Featured communities that offer upgraded HVAC filtration:
10. Community gardens
Many renters are no longer stuck only growing whatever fits inside or on their tiny porch. Instead, lots of apartment communities have established community food and flower gardens as a way to encourage community, healthy eating and good old-fashioned outdoor time.
Some even include community compost heaps, where residents can responsibly dispose of compostable waste like eggshells, veggie scraps and coffee grounds!
Featured communities that offer community gardens:
Eco-friendly amenities are here to stay
Every eco-friendly amenity really adds up when it comes to helping the planet. Even if the unit you’re in (or the one you’re looking at) doesn’t sport some of these, broach the subject with the landlord. It can’t hurt to inquire, and maybe some positive changes will result!
A freelance writer based out of the Atlanta area, Alia has penned articles during her decade+ career for such sites as HowStuffWorks, TLC, Animal Planet, Zillow and many more. Her favorite things to write about include fitness, nutrition, travel, healthcare and general lifestyle topics. A graduate of the University of Georgia, Alia’s an avid Dawg, but she also loves reading, sewing, eating all things chocolate and playing sports with her husband, three boys and beloved border collie, Flash.
Home renovations can be expensive. But the good news is that you don’t have to pay out of pocket.
Home improvement loans let you finance the cost of upgrades and repairs to your home.
Some — like the FHA 203(k) mortgage — are specialized for home renovation projects, while second mortgage options — like home equity loans and HELOCs — can provide cash for a remodel or any other purpose. Your best financing option for home improvements depends on your needs. Here’s what you should know.
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What is a home improvement loan?
A home improvement loan is a financial tool that allows you to borrow money for various home projects, such as repairs, renovations, or upgrades.
Unlike a secured loan like a second mortgage, home improvement loans are often unsecured personal loans, meaning you don’t have to put up your home as collateral. You get the money in a lump sum and pay it back over a predetermined period, which can range from one to seven years.
Now, you might be wondering how this is different from a home renovation loan. While the terms are often used interchangeably, there can be subtle differences.
Home improvement loans are generally more flexible and can be used for any type of home project, from installing a new roof to landscaping. Home renovation loans, on the other hand, are often more specific and may require you to use the funds for particular types of renovations, like kitchen or bathroom remodels.
How does a home improvement loan work?
So, you’ve decided to spruce up your home, and you’re considering a home improvement loan. But how does it work? Once you’re approved, the lender will give you the money in a lump sum. You start repaying the loan almost immediately, usually in fixed monthly installments. The interest rate you’ll pay depends on various factors, including your credit score and the lender’s terms.
Be mindful of additional costs like origination fees, which can range from 1% to 8% of the loan amount. Unlike a credit card, where you can keep using the available credit as you pay it off, the loan amount is fixed. If you find that you need more money for your project, you’ll have to apply for another loan, which could affect your credit score.
Home improvement loan rates
Interest rates for home improvement loans can vary widely, generally ranging from 5% to 36%. Your credit score plays a significant role in determining your rate—the better your credit, the more favorable your rate. Some lenders even offer an autopay discount if you link a bank account for automatic payments.
You can also prequalify to check your likely interest rate without affecting your credit score, making it easier to plan for the loan purpose, whether it’s a new kitchen or fixing a leaky roof.
So, whether you’re dreaming of solar panels or finally fixing up your master bedroom, a home improvement loan can be a practical way to finance your projects. Just make sure to read the fine print and understand all the terms, including any potential autopay discounts and bank account requirements, before you apply.
Types of home improvement loans
1. Home equity loan
A home equity loan (HEL) is a financial instrument that lets you borrow money using the equity you’ve built up in your home as collateral. The equity is determined by subtracting your existing mortgage loan balance from your current home value. Unlike a cash-out refinance, a home equity loan “issues loan funding as a single payment upfront. It’s similar to a second mortgage,” says Bruce Ailion, Realtor and real estate attorney. “You would continue making payments on your original mortgage while repaying the home equity loan.”
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This kind of loan is particularly useful for big, one-time expenditures like home remodeling. It offers a fixed interest rate, and the loan terms can range from five to 30 years. You could potentially borrow up to 100% of your home’s equity.
However, there are some cons to consider. Since you’re essentially taking on a second loan, you’ll have an additional monthly payment if you still have a balance on your original mortgage. Also, the lender will usually charge closing costs ranging from 2% to 5% of the loan balance, as well as potential origination fees. Because the loan provides a lump-sum payment, careful budgeting is necessary to ensure the funds are used effectively.
As a bonus, “a home equity loan, or HELOC, may also be tax-deductible,” says Doug Leever with Tropical Financial Credit Union, member FDIC. “Check with your CPA or tax advisor to be sure.”
2. HELOC (home equity line of credit)
A Home Equity Line of Credit (HELOC) is another option for tapping into your home’s equity without going through the process of a full refinance. Unlike a standard home equity loan that provides a lump sum upfront, a HELOC functions more like a credit card. You’re given a pre-approved limit and can borrow against that limit as you need, paying interest only on the amount you’ve actually borrowed.
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While there’s more flexibility because you don’t have to borrow the entire amount at once, be aware that by the end of the term, “the loan must be paid in full. Or the HELOC can convert to an amortizing loan,” says Ailion. “Note that the lender can be permitted to change the terms over the loan’s life. This can reduce the amount you can borrow if, for instance, your credit goes down.”
The pros of a HELOC include minimal or potentially no closing costs, and loan payments that vary according to how much you’ve borrowed. It offers a revolving balance, which means you can re-use the funds after repayment. This kind of financial instrument may be ideal for ongoing or long-term projects that don’t require a large sum upfront.
“HELOCs offer flexibility, and you only pull money out when needed, within the maximum loan amount. And the credit line is available for up to 10 years, which is your repayment period.” Leever says.
3. Cash-out refinance
A cash-out refinance is a viable option if you’re considering home improvements or other significant financial needs. When opting for a cash-out refinance, you essentially take on a new, larger mortgage than your existing one and then pocket the difference in cash.
This cash comes from your home’s value and can be used for various purposes, including home improvement projects like finishing a basement or remodeling a kitchen. However, the money can also be used for other things, like paying off high-interest debt, covering education expenses, or even buying a second home. Importantly, a cash-out refinance is most beneficial when current market rates are lower than your existing mortgage rate.
Check your eligibility for a cash-out refinance. Start here
The advantages of going for a cash-out refinance include the opportunity to reduce your mortgage rate or loan term, which could potentially result in paying off your home earlier. For instance, if you initially had a 30-year mortgage with 20 years remaining, you could refinance to a 15-year loan, effectively paying off your home five years ahead of schedule. Plus, you only have to worry about one mortgage payment.
However, there are downsides. Cash-out refinances tend to have higher closing costs that apply to the entire loan amount, not just the cash you’re taking out. The new loan will also have a larger balance than your current mortgage, and refinancing effectively restarts your loan term length.
4. FHA 203(k) rehab loan
The FHA 203(k) rehab loan is backed by the Federal Housing Administration that consolidates the cost of a home mortgage and home improvements into a single loan, which makes it particularly useful for those buying fixer-uppers.
Check your eligibility for an FHA 203(k) loan. Start here
With this program, you don’t need to apply for two different loans or pay closing costs twice; you finance both the house purchase and the necessary renovations at the same time. The loan comes with several benefits like a low down payment requirement of just 3.5% and a minimum credit score requirement of 620, making it accessible even if you don’t have perfect credit. Additionally, first-time home buyer status is not a requirement for this loan.
However, there are some limitations and downsides to be aware of. The FHA 203(k) loan is specifically designed for older homes in need of repairs, rather than new properties. The loan also includes both upfront and ongoing monthly mortgage insurance premiums. Renovation costs have to be at least $5,000, and the loan restricts the use of funds to certain approved home improvement projects.
According to Jon Meyer, a loan expert at The Mortgage Reports, “FHA 203(k) loans can be drawn out and difficult to get approved. If you go this route, it’s important to choose a lender and loan officer familiar with the 203(k) process.”
5. Unsecured personal loan
If you’re looking to finance home improvements but don’t have sufficient home equity, a personal loan could be a viable option. Unlike home equity lines of credit (HELOCs), personal loans are unsecured, meaning your home is not used as collateral. This feature often allows for a speedy approval process, sometimes getting you funds on the next business day or even the same day.
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The repayment terms for personal loans are less flexible, usually ranging between two and five years. Although you’ll most likely face closing costs, personal loans can be easier to access for those who don’t have much home equity to borrow against. They can also be a good choice for emergency repairs, such as a broken water heater or HVAC system that needs immediate replacement.
However, there are notable downsides to consider. Unsecured personal loans generally have higher interest rates compared to HELOCs and lower borrowing limits. The short repayment terms could put financial strain on your budget. Additionally, you may encounter prepayment penalties and expensive late fees. Financial expert Meyer describes personal loans as the “least advisable” option for homeowners, suggesting that they should be considered carefully and perhaps as a last resort.
6. Credit cards
Using a credit card can be the fastest and most straightforward way to finance your home improvement projects, eliminating the need for a lengthy loan application. However, you’ll need to be cautious about credit limits, especially if your renovation costs are high.
You might need a card with a higher limit or even multiple cards to cover the costs. The interest rates are generally higher compared to home improvement loans, but some cards offer an introductory 0% annual percentage rate (APR) for up to 18 months, which can be a good deal if you’re sure you can repay the balance within that time frame.
Check home improvement loan options and rates. Start here
Credit cards might make sense in emergency situations where you need immediate funding. For longer-term financing, though, they’re not recommended. If you do opt for credit card financing initially, you can still get a secured loan later on to clear the credit card debt, thus potentially saving on high-interest payments.
How do you choose the best home improvement loan for you?
The best home improvement loan will match your specific lifestyle needs and unique financial situation. So let’s narrow down your options with a few questions.
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Do you have home equity available?
If so, you can access the lowest rates by borrowing against the equity in your home with a cash-out refinance, a home equity loan, or a home equity line of credit.
Here are a few tips for choosing between a HELOC, home equity loan, or cash-out refi:
Can you get a lower interest rate? If so, a cash-out refinance could save money on your current mortgage and your home improvement loan simultaneously
Are you doing a big, single project like a home remodel? Consider a simple home equity loan to tap into your equity at a fixed rate
Do you have a series of remodeling projects coming up? When you plan to remodel your home room by room or project by project, a home equity line of credit (HELOC) is convenient and worth the higher loan rate compared to a simple home equity loan
Are you buying a fixer-upper?
If so, check out the FHA 203(k) program. This is the only loan on our list that bundles home improvement costs with your home purchase loan. Just review the guidelines with your loan officer to ensure you understand the disbursement of funds rules.
Taking out just one mortgage to cover both needs will save you money on closing costs and is ultimately a more straightforward process.
“The only time I’d recommend the FHA203(k) program is when buying a fixer-upper,” says Meyer. “But I would still advise homeowners to explore other loan options as well.”
Do you need funds immediately?
When you need an emergency home repair and don’t have time for a loan application, you may have to consider a personal loan or even a credit card.
Which is better?
Can you get a credit card with an introductory 0% APR? If your credit history is strong enough to qualify you for this type of card, you can use it to finance emergency repairs. But keep in mind that if you’re applying for a new credit card, it can take up to 10 business days to arrive in the mail. Later, before the 0% APR promotion expires, you can get a home equity loan or a personal loan to avoid paying the card’s variable-rate APR
Would you prefer an installment loan with a fixed rate? If so, apply for a personal loan, especially if you have excellent credit
Just remember that these options have significantly higher rates than secured loans. So you’ll want to reign in the amount you’re borrowing as much as possible and stay on top of your payments.
How to get a home improvement loan
Getting a home improvement loan is similar to getting a mortgage. You’ll want to compare rates and monthly payments, prepare your financial documentation, and then apply for the loan.
Check home improvement loan options and rates. Start here
1. Check your financial situation
Check your credit score and debt-to-income ratio. Lenders use your credit report to establish your creditworthiness. Generally speaking, lower rates go to those with higher credit scores. You’ll also want to understand your debt-to-income ratio (DTI). It tells lenders how much money you can comfortably borrow.
2. Compare lenders and loan types
Gather loan offers from multiple lenders and compare costs and terms with other types of financing. Look for any benefits, such as rate discounts, a lender might provide for enrolling in autopay. Also, keep an eye out for disadvantages, including minimum loan amounts or expensive late payment fees.
3. Gather your loan documents
Be prepared to verify your income and financial information with documentation. This includes pay stubs, W-2s (or 1099s if you’re self-employed), and bank statements, to name a few.
4. Complete the loan application process
Depending on the lender you choose, you may have a fully online loan application, one that is conducted via phone and email, or even one that is conducted in person at a local branch. In some cases, your mortgage application could be a mix of these options. Your lender will review your application and likely order a home appraisal, depending on the type of loan. You’ll get approved and receive funding if your finances are in good shape.
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Home improvement loan lenders
When considering a home improvement loan, it’s necessary to explore various lending options to find the one that best suits your needs. The lending landscape for home improvement is diverse, featuring traditional banks, credit unions, and online lenders. Each type of lender offers different interest rates, loan terms, and eligibility criteria.
It’s advisable to prequalify with multiple lenders to get an estimate of your loan rates, which generally doesn’t affect your credit score. This way, you can compare offers and choose the most favorable terms for your renovation project.
Among the popular choices in the market, Sofi and LightStream stand out for their competitive rates, easy online application, and customer-friendly terms. Both are equal housing lenders, ensuring they adhere to federal anti-discrimination laws. In addition to these, other lenders like Wells Fargo and LendingClub also offer home improvement loans with varying terms and conditions.
How can I use the money from a home improvement loan?
When you do a cash-out refinance, a home equity line of credit, or a home equity loan, you can use the proceeds on anything — even putting the cash into your checking account. You could pay off credit card debt, buy a new car, pay off student loans, or even fund a two-week vacation. But should you?
It’s your money, and you get to decide. But spending home equity on improving your home is often the best idea because you can increase the value of your home. Spending $40,000 on a new kitchen remodel or $20,000 on finishing your basement could add significant value to your home. And that investment would be appreciated along with your home.
That said, if you’re paying tons of interest on credit card debt, using your home equity to pay that off would make sense, too.
Average costs of home renovations
Home renovations can vary widely in cost depending on the scope of the project, the quality of the materials used, and the region where you live. However, here’s a general idea of what you might expect to pay for various types of home renovations.
Renovation Type
Average Cost Range
Kitchen Remodel
$10,000 – $50,000
Bathroom Remodel
$5,000 – $25,000
Master Bedroom Remodel
$1,500 – $10,000
New Roof
$5,000 – $11,000
Exterior Paint
$6,000 – $20,000
Interior Paint
$1,500 – $10,000
New Deck
$15,000 – $40,000
Solar Panel Installation
$15,000 – $25,000
Window Replacement
$5,000 – $15,000
The information is based on data from HomeGuide.com and is current as of August 2023.
Please note that these are just average figures, and the actual costs can vary. For instance, a high-end kitchen remodel could cost significantly more, especially if you’re planning to use custom cabinetry and high-end appliances. Similarly, the cost of a new deck can vary depending on the size and type of materials used.
Home improvement loans FAQ
Check home improvement loan options and rates. Start here
What type of loan is best for home improvements?
The best loan for home improvements depends on your finances. If you have accumulated a lot of equity in your home, a HELOC, or home equity loan, might be suitable. Or, you might use a cash-out refinance for home improvements if you can also lower your interest rate or shorten the current loan term. Those without equity or refinance options might use a personal loan or credit cards to fund home improvements instead.
Should I get a personal loan for home improvements?
That depends. We’d recommend looking at your options for a refinance or home equity-based loan before using a personal loan for home improvements. That’s because interest rates on personal loans are often much higher. But if you don’t have a lot of equity to borrow from, using a personal loan for home improvements might be the right move.
What credit score is needed for a home improvement loan?
The credit score requirements for a home improvement loan depend on the loan type. With an FHA 203(k) rehab loan, you likely need a good credit score of 620 or higher. Cash-out refinancing typically requires at least 620. If you use a HELOC, or home equity loan, for home improvements, you’ll need a FICO score of 680–700 or higher. For a personal loan or credit card, aim for a score in the low-to-mid 700s. These have higher interest rates than home improvement loans, but a stronger credit profile will help lower your rate.
What is the best renovation loan
If you’re buying a fixer-upper or renovating an older home, the best renovation loan might be the FHA 203(k) mortgage. The 203(k) rehab loan lets you finance (or refinance) the home and renovation costs into a single loan, so you avoid paying double closing costs and interest rates. If your home is newer or of higher value, the best renovation loan is often a cash-out refinance. This lets you tap the equity in your current home and refinance into a lower mortgage rate at the same time.
Is a home improvement loan tax deductible?
Home improvement loans are generally not tax-deductible. However, if you finance your home improvement using a refinance or home equity loan, some of the costs might be tax-deductible.
Disclaimer: The Mortgage Reports do not provide tax advice. Be sure to consult a tax professional if you have any questions about your taxes.
Shop around for your best home improvement loan
As with anything in life, it pays to compare all your options. So don’t just settle on the first loan offer you find.
Compare lenders, mortgage types, rates, and terms carefully to find the best loan for home improvements.
Time to make a move? Let us find the right mortgage for you
There are many changes you can make to reduce the environmental impact your home and your daily life has on the planet. Even simple adjustments like using green cleaning products, finding ways to reuse your kitchen scraps, or locking your windows shut, can lead to less waste and energy savings. Whether you just bought a house in Miami, Los Angeles, or anywhere in between, here are some great ways to save energy, reduce your carbon footprint, and save money all from the comfort of your own home.
Reconsider your grocery shopping habits
To reduce waste and save energy at home, adopt eco-friendly grocery shopping habits.
“Subscribing to a milk delivery service with reusable glass bottles, reusing bags at a bulk grocery store, and selecting glass or metal packaging can make a tremendous difference in reducing our consumption of plastics,” says Lyons, CO-based BrightHeart Decor.
These simple adjustments in your grocery shopping routine can make a significant difference in promoting sustainability at home.
Save energy with LED lighting
In addition to upgrading the look of your home’s interior, changing up the lighting can make your home more efficient. LED bulbs are much more energy-efficient than other alternatives, and incorporating them throughout your home is an easy way to conserve energy.
“The easiest DIY way to save energy is to install LED lighting and click the thermostat one to two degrees up or down,” according to Edge Energy “Another way to conserve energy is to get an energy audit and do basic installations of any cost-effective retrofits.”
Reduce your household’s consumption of water
A common area of waste in many households is water usage. The average US household consumes over 300 gallons of water per day, and much of this is unnecessary. If you’re looking for ways to save water, simply being mindful of when the water is running unnecessarily can go a long way.
“Try cutting down on your daily water usage at home by saving six liters of water a minute by turning off your tap while you brush your teeth,” suggests Bamboodu, an online store that specializes in eco-friendly products. “Use natural biodegradable cleaning products that don’t contain chemicals, and install taps and showers with automatic shut-off.”
Use smart home technology to save energy and avoid expensive repairs
We all know that technology has made our lives easier, but it can also save money by reducing energy waste. Sensors on home appliances can not only prevent food and energy waste, but also alert homeowners to potential issues that could prove costly if missed.
“Smart homes enable homeowners to save energy and money by automatically regulating lights and thermostats using geofencing and motion sensor technology,” says Agile Home Automation. “Leak detectors can notify homeowners of problems before they become costly repair situations. Freezer and refrigerator sensors can notify homeowners if a door is not closed properly, or if the unit is beginning to fail before the food is ruined.”
“Using automation for lighting, temperature control, and window coverings is the most cost-effective way to reduce waste, and manage and save energy use in your home,” adds Brad Smith, president of Audio Video Design. “Today’s products sync with circadian rhythms and the astronomical clock for personal and precise customization.”
Be friendly to the environment (and your pocket) by going solar
With recent improvements in solar technology, saving money on electricity with solar panels is easier than it’s ever been. Take advantage of clean energy and save yourself some money in the process.
“Homeowners can install solar on their roof or property and pay no more than they were paying for electricity before, and hedge against rising electric costs while making the planet a cleaner place to live,” says Madison, NJ -based Green House Solar. “Not only will solar save energy, but it will also increase the resale value of your home.”
“Homeowners can save energy and get a greater return on investment by pairing their solar system with a smart home system,” adds Freedom Forever, a Temecula, CA-based company that combines solar and smart technology. “These systems enable homeowners to schedule when appliances consume electricity, allowing you to use more of your solar power and send less to the grid.
Find ways to save and reuse your produce
A great way to prevent food waste is by getting the most out of your produce scraps. Get more out of your veggies by using the scraps for a homemade vegetable broth.
“To make the most of your produce, save your vegetable scraps,” says blogger Nutti Nelli. “Once you fill up a half-gallon of scraps, bring five cups of water to a boil and add your veggie scraps, one teaspoon of salt, and one teaspoon of black pepper, and simmer for one hour. Drain the scraps, and now you have four cups of vegetable broth to use for cooking, soups, curries, or stews.”
Think twice about the cleaning products you’re using
When it comes to eco-friendly cleaning products, the first thing that probably comes to mind is biodegradable products. While these are great, you can go a step further by eliminating plastic packaging entirely.
“Save space and eliminate plastic from your cleaning routine when you use USDA certified biobased products,” says Beyond Clean Products, a company that specializes in eco-friendly cleaning products. “Consider incorporating detergent sheets and auto dish tabs that are 100 percent plastic-free.”
Keep windows locked to avoid any air leaks
Whether you’re running the AC during the summer or heating your home in the chilly winter months, the last thing you want is to run up your bill because of air leaks. Locking your windows not only secures your home, but also the air inside it.
“Keep your windows locked to save energy in your home, says Home Energy Saving Solutions. “The lock is not only for security, but it also keeps the window close-packed and creates a seal along the weather-stripping of the window. An unlocked window is an open window.”
Recycle your leftover household paint
If you’ve got leftover paint lying around after a recent home project, you may be wondering how exactly you’re supposed to get rid of it. Product Care Recycling cautions against simply throwing old paint in the trash.
“A fresh coat of paint can give your home new life,” they say. “However, leftover paint, like other hazardous household products, does not belong in the trash. It should be recycled to avoid contaminating our soil and water sources and to divert landfill waste.”
Enrich your soil and decrease landfill waste
Whether you already have a home garden or just want to help the environment, composting is a great way to get the most out of your food waste. The planet will appreciate it and so will your plants.
“Composting is one of the most impactful actions you can take to both reduce household waste heading to landfills and create an ultra-nourishing natural resource that your garden will love,” says Sustainable Jungle, a website that shares sustainability tips and tricks. “Some cities even offer discounts on composters to help encourage this community supporting activity.”
Use dimmable indoor lighting
Home lighting is another area where energy waste can take place. Since most light bulbs operate at full capacity when turned on, you may end up using more energy than you need to keep your home lit, especially during the day. Dimmable lights give your home a more natural glow, saving energy in the process.
“One of the most effective ways to reduce your electricity bill is to install a lighting control system or smart lighting,” says TSP Smart Spaces. “We’re all used to running our lights at 100 percent, but the reality is that not only do we not need to use 100 percent of the energy of a bulb all the time. Dimmable LEDs create a much more enjoyable living experience, and natural lighting that costs 20 to 50 percent less to run compared to regular switches.”
If you own a home, you probably always have a list of improvements you’re considering. Maybe you desperately want to replace those dated kitchen appliances that scream year 2000, or you want to focus on ways to lower your energy bills, whether that means some strategic air sealing or adding solar panels.
Chances are, you also want any upgrades you pay for to increase the value of your home. You want to know that if and when it comes time to sell your place, you’ll recoup a good percentage of what you invested.
So, whether you have the cash saved up for home investment or you are looking to borrow for your next home project, consider these wise investments.
1. Improve Your Attic Insulation
We get it: You’re not going to invite friends over to see your new attic insulation.But it’s one of the best ways to increase your home’s energy efficiency.
You’ll not only profit when it’s time to sell, but you’ll also see immediate savings from the ongoing energy efficiency this upgrade provides. A properly insulated attic, combined with sealing air leaks throughout your home, cuts an average of 15% off your heating and cooling costs, allowing you to pocket the savings month after month. And who doesn’t want a lower energy bill?
Cost: $600 to $1,200 for blown-in insulation for a 1,000-square-foot attic. You may also need to rent the machine that blows in the fiberglass if you’re a DIY type. If you hire a pro, labor will run about $40 to $70 an hour. 💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.
2. Treat Yourself to New Windows
New windows can do double duty. Not only do they update a room’s tired appearance, they can also have energy-efficiency benefits. Depending on how many windows you replace, this can be a very big-ticket item. The average cost for a vinyl window replacement is $850, and a whole-home job can ring in at $20,091, according to Remodeling magazine. (Wood windows are pricier still.)
But here’s some good news: Replacing those windows adds value to your home. Typically, to the tune of 69% of the cost of the window-replacement project.
Cost: Anywhere from $850 per vinyl window to $20,000+ for the whole house. Again, if you go for wood vs. vinyl windows or need custom size ones (or several French doors), the price can ratchet up significantly. In that case, you might want to look at home improvement loan options.
3. Build a Deck
You and likely anyone who might buy your home in the future will love what a deck can do, lifestyle-wise. Weather permitting, you can have your AM coffee there, type away on your laptop during the day, and host friends, read, or just listen to the birdsong during off-hours. Here’s another nice thing about adding a deck: Your ROI is typically around 68% of the money you pay.
Cost: A new wood deck will cost on average $16,766. A composite one can cost more; on average, these are $22,426.
Read Next: How to Create a Renovation Plan to Match Your Budget
4. Refresh Your Bathroom
Who doesn’t love a beautiful new bathroom, whether your style is sleek and all white or if you prefer a warmer country cottage vibe? A bath remodel will cost, on average, between $6,627 and $17,494, according to Angi, the home renovation site. While an updated bath can definitely add to your home’s value, keep in mind that the sky’s the limit with the price tag. If you move the fixtures around and add one of those egg-shaped soaking tubs or a spa shower that has half-a-dozen mist settings, you may go well beyond the average range of costs.
Also, keep in mind that if you do something really singular (say, you pick tile in a super-bright shade), it may be harder to get your money out if and when you sell your property.
Cost: The average cost is $11,944, with cabinets and shelving accounting for 25% of the total, the shower and tub eating up 22% of costs, and your contractor’s fees usually being about 13% of your total expense. Of course, you can do a small bathroom remodel, perhaps repainting, adding some new artwork and a fresh shower curtain. 💡 Quick Tip: Home improvement loans typically offer lower interest rates than credit cards. Consider a loan to fund your next renovation.
5. Cook up a Cooler Kitchen
If you’re stuck with outdated appliances or hideous cabinets, a kitchen remodel is likely high on your list of improvements. It’s a great way to refresh your kitchen’s style and function.
But increasing home value with a new kitchen can fry your bank account: A remodel typically runs $14,612 and $41,392 according to Angi, but can cost much more if you move appliances’ position, opt for marble countertops, or fall in love with custom cabinetry. On average, you’ll recoup about 60% in ROI.
To update for less and wow your kitchen in a weekend, make some wallet-friendly upgrades: fresh paint, a new faucet, updated lighting (pendant lights are a good choice), and new cabinet pulls.
Cost: While you could just swap out cabinet pulls, which start at about $2 each, and repaint (plan on around $200), a larger kitchen remodel averages $26,849. Again, however, it’s worth noting you could spend multiples of that, depending on how large a project, how luxe the details, and where you live (cost of living can impact the price of goods and services in your area).
Recommended: Secured vs. Unsecured Personal Loans
The Easy Way to Finance HGTV-Worthy Upgrades
Even budget-friendly home improvements can set you back quite a bit. If you haven’t set aside the budget to bring more value to your home, you don’t necessarily have to dip into your retirement account or pay less on your student loans each month. You might want to consider a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
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If you’re interested in the world of real estate, the first thing you must do is become licensed. Once you meet the requirements and take and pass the licensing test, you can begin to sell houses to happy families, and with hard work, you can make a good living. Many people give up before they start because they fear taking the licensing exam, but with proper research and an understanding of the job, you can pass the test and start building your brand.
What To Know Going In
Before hitting the books and taking the time to get your real estate license, you must know what you can do with that certification and the other skills you’ll need that aren’t always taught in school. First, know that there are many different jobs that you can perform once you get your license. In addition to selling houses, you can work as a property manager, real estate attorney, home inspector, real estate photographer, and more. So, if any of those titles interest you, read on and consider your license.
Stay On Top Of Trends
While you’ll be learning a lot during your license classes, remember that your education doesn’t stop just because you passed the test. As time goes on, it’s necessary to stay on top of current news and trends so you can be the best agent you can be. For instance, you’ll want to learn how climate change impacts the real estate industry. Weather and rainfall can impact desirable locations around the country, and you may get questions about how climate change can affect property values.
Along those lines, you should keep up-to-date on industry data and trends such as the growing interest in eco-friendly homes. You should know which sustainable home upgrades have the greatest return on investment such as solar panels and energy-efficient doors and windows. If you are working with a seller, you can advise what financing options your client has to finance upgrades such as home equity and Federal Housing Administration loans. Home buyers will likely have questions in this regard, and you’ll want to have the answers.
A Positive Self Image Is Essential
While certification and a license are essential, so is having a positive self-image because it’s a way to enhance your professional opportunities in the real estate world. When you’re confident in yourself, and it shows, your clients will have more confidence in you. By practicing self-care and dressing for success, you give off the impression that you care about yourself and what you do, and clients will respond positively to what they see.
You can build your self-confidence by setting goals for yourself, like selling a house in a certain price range and then celebrating that accomplishment.
Application Steps And State Requirements
When you’re confident that you want to continue a career path as a real estate agent, you need to get your license. Note that every state may have different requirements, so do your research to ensure you follow the right steps. In many cases, you may first be required to pass a background check so the state can ensure that you’re honest and have the integrity necessary to handle a client’s personal information and discuss sensitive financial topics.
Next, you will likely need to complete various classes to learn about real estate and get the information necessary to pass your licensing exam. Some states require over 100 hours of pre-licensing courses, including those about real estate principles, finance, and how to complete essential forms. Keep in mind that these classes and the eventual application will cost money. According to The CE Shop, you can expect to pay between $300-$1,000, depending on the state.
After completing those classes, most states will require you to pass a pre-license course final exam to ensure that you’ve retained the information you’ve been taught. Get past that, and it’s time to apply for a license. The application will ask about your personal information, and you’ll also need to submit copies of your exam score and work authorization.
Finally, you’ll take your state licensing exam. You’ll have a certain time frame to take the test, and you’ll need to get a score according to your state guidelines. After you pass, you can join a real estate broker and gain experience out in the field.
What To Do Moving Forward
While obtaining your real estate license is a significant task, this is only the first step you’ll need to take during your long career as a real estate agent. Your education is far from over. Your particular state may require that you follow continuing education requirements. For example, in Delaware, you’ll need to take post-licensing courses 90 days after you’ve received your initial license, and in Indiana, you’ll be required to take 30 hours of post-licensing education within the first two years of being licensed.
There are also additional titles that you can gain over time to supplement your education and potentially earn more money. Some of these designations and certifications include a GREEN Designation, which provides the tools to help you understand and market properties with green features that customers are so excited about. You could also become a Certified Residential Specialist. Doing so will help you to learn more about the industry and potentially earn three times as much as agents who don’t have the designation.
Finally, while securing your license and certifications and learning the ropes, take the time to build your brand and make a name for yourself. Invest in professional photos and create a website to build your online presence. Start networking with other agents by attending industry events and seminars. Remember that you won’t be a success overnight, but by working hard and keeping your eye on the prize, you will find success.
Conclusion
These are the basic principles to remember when applying for and obtaining your real estate license. Remember to research the rules in your state to ensure you’re fully compliant. Once licensed, take on the world one property at a time.
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LA-based DJ, avid snowboarder, and TV personality Tyler Marenyi — better known by his stage name, DJ NGHTMRE — is branching out.
Turns out that the Raleigh, North Carolina native, who released his album, Drmvrse last year and is currently busy touring the country as part of his The Great Sonic Wars Tour, also dabbles in real estate.
He just listed a newly built home in Culver City, California, one that comes with a main residence and not one, but two ADUs (accessory dwelling units) — which can be rented out and generate income for the future owners — as well as a lovely zen garden.
Since the property has just been completed and is listed as a new construction, it’s safe to assume it was never meant to serve as DJ NGHTMRE’s house.
Rather, it seems like Tyler Marenyi is diversifying his income streams, and investing the money he makes from headlining music festivals around the world into real estate — and making a profit in the process.
Listed for just over $3 million with Gina Michelle, Margaret Sievers, and George Ouzounian of The Agency, the property has a total of 7 bedrooms and 6 baths (totaling 3,417 sq. ft.) spread across the three structures on the lot.
The main house, a bright, light-filled single-story structure stands out with its clean lines and modern design.
With three bedrooms and two baths, it features high vaulted ceilings and custom light fixtures, creating a spacious and inviting ambiance.
The master bedroom, a serene retreat, boasts a large walk-in closet and elegant French doors that lead to a private outdoor sanctuary.
Complementing the main residence is a two-story Accessory Dwelling Unit (ADU), complete with three bedrooms and three bathrooms. This additional unit is not just a space for guests; it’s an epitome of sustainable living, equipped with solar panels.
Set at the back of the property, the two-story ADU is a full-fledged residence in itself, one that can house family members or that can be rented out for additional income.
Moreover, a Junior ADU adds further versatility to this unique property. You can see all the structures in the image below.
The outdoor area of this property is where the zen-like design truly comes to life.
A meticulously crafted zen garden, complete with lush greenery and a mature avocado tree, offers a slice of paradise in the heart of the city. The advanced dual-control irrigation system ensures that this garden oasis remains vibrant with minimal effort, marrying beauty with practicality.
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*Featured image credit: property photo courtesy of The Agency, NGHTMRE insert courtesy of FROZYO!, CC BY-SA 4.0, via Wikimedia Commons
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