For those fortunate enough to obtain a significant return on their taxes, the pleasant surprise is sometimes similar to finding extra change in your pocket. Only in this case, your “extra change” has a comma in the number.
There are winners and losers with the new tax laws. If you fall into the former category, it’s easy to forget what things you wanted to buy or invest in unless you wrote a list. Most subconsciously forget these desires as it eventually becomes a source of pain.
- Buy a home – obviously, most tax returns won’t be enough for a first-time homebuyer’s minimum 3.5% down, so this assumes you have other savings or family that can assist. Many homeowners that bought long ago have stories of how they had to find every penny for a downpayment, but admit it was well worth it for their procrastination to end.
- Exchange your current home – for those who already own a home and have been eyeing a larger home or a smaller single level home, the extra money from the tax return might be enough to combine with your current home’s equity. The market has risen so much since it’s lowest point in 2010, most homeowners will have significant equity by now. I’ve even seen cases where people who bought at the peak of 2005/06 gain equity.
- Remodel your home – contrary to many home flipping shows, many expenses on home remodeling will not yield a return on your investment. For example, when someone spends $50,000 on a kitchen remodel, it doesn’t necessarily mean their home’s value will increase by at least $50,0000. Best way to look at this is an expense — not necessarily an investment. Go ahead and do it and enjoy your home more as it’s the setting to many family memories and time spent with friends. You can’t put a price on everything.
- Buy a solar system. With summer just around the corner and the heat seeming to last longer with each year, everyone is dreading their summer electric bills.
Sunrun offers many options for going solar including no money upfront. Jeffrey Joseph offers free consultations to answer any questions you may have.