Make the Most of Your Tax Rebate: Reinvest in Your Home
May 30th, 2008
In an effort to jumpstart the struggling economy, the federal government has approved an economic stimulus package that will send rebate checks to qualifying taxpayers, some as early as May. Homeowners can use this refund to invest in home improvements that add value in a difficult housing market.
Qualifying individual taxpayers will get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child. Add that to the average refund some taxpayers can expect after filing their taxes ($2,548 in 2007, according to CNNMoney.com) and that’s approximately $3,800 in total refunds from the federal government this year.
Investing these dollars in home improvements, such as replacing old leaky windows with newer, energy efficient ones, can offer homeowners a significant return on investment. Some experts believe that replacement windows are one of the best home improvement investments you can make in your home.
“Remodeling Magazine’s” 2007 Cost vs Value Report estimates that a homeowner may recoup 81 percent of the cost of installing low maintenance replacement windows at resale. That means on an $8,000 window replacement project, homeowners may recoup $6,480 at the time of sale.
In addition, new energy efficient windows can lower heating and cooling bills, improve a home’s comfort and aesthetics, and add long-lasting value.
If the cost of new windows is out of reach consider changing or adding an area rug. Area rugs are an inexpensive purchase that can change the style and mood of an entire room. An oriental rug of unique design or striking colors will immediately draw the eye and become the focal point. You can use this feature to highlight a prized piece of furniture. Come Winter you will appreciate the comforting warmness.
With a substantial savings in energy costs along with a solid return on investment from home improvement projects, buying energy efficient windows is a wise use of your rebate dollars. And, if you ever decide to sell your home, energy efficient windows can give you the edge — and often a higher resale value — over other sellers in an increasingly competitive housing market.
