Home Ownership as a Promising Investment
Home values are increasing fast in Seattle and across the country. What does that mean to your net worth?
For most of us, buying a house is first about having a wonderful place to live. But it’s also a huge investment and a hefty portion of our net worth comes from our home equity. As the value of our home increases, so does our equity, thus home ownership can be a great investment.
In addition to the tax benefits, home ownership is a good hedge against inflation. Over most time periods, housing costs grow faster than the rate of inflation.
If you have trouble socking away part of your paycheck in savings, think of your mortgage payment as a contribution to your investment portfolio—one that will appreciate substantially, given current market trends.
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OKim Wesselman Windermere real estate
According to economics research firm Pulsenomics, home values nationwide are expected to appreciate 4.3% in 2015, with cumulative appreciation of 19.4% by 2019.
That’s probably a conservative estimate for Seattle. Home values in Seattle will most likely grow faster
than the national average. Nationwide, home prices increased an average of 5% over the last 12 months, but prices in the Seattle metro area increased 7.5%, according to the Standard & Poor’s/ Case-Shiller 20-city home price index. Only five cities saw prices increase at a faster pace over the past year than Seattle. San Francisco tops the list, followed by Denver, Dallas, Miami, and Tampa.
If we apply the Pulsenomics forecast to a house in Queen Anne or Magnolia that started 2015 valued at $800,000, the home’s value will rise to $834,400 by the end of this year. By the end of 2019, it would be valued at $955,200. That’s $155,200 growth in net worth over the next five years,
➧ INVESTMENT, Page 2
wood or composite deck right for your home?
utdoor living is a home improvement trend that can’t be ignored. If you plan to add a deck to your house, remember the design is only one aspect of the planning process. The materials you decide to use can affect the project in numerous ways, from the initial investment to maintenance years from now.
Deciding between wood and composite decking can seem complex. You may have heard composite is superior but costly. You also may have heard that wood is greener yet more susceptible to bugs. Get the facts when it comes
Building a deck with composite materials will cost more than virgin wood initially, but not as much as most people think. The substructure is the same cost for either option and the remainder of the project could cost about 25 percent more for composite. That cost, though, is often recouped over time because there is little maintenance required with composites, while maintaining a
wood deck can cost hundreds of dollars each year. Want to see how the numbers compare? Visit www.epa.gov and check out the EPA’s GreenScapes Tools Excel Decking Cost Calculator and an example that compares the cost of building a new deck with composites versus conventional wood.
Maintenance Low maintenance is in high demand for homeowners, and decking is no exception. Wood
Rcphoto | Dreamstime.com - American Craftsman House Photo
PREMIER DOWNTOWN LIVING offered at $2,495,000
ELLEN
Broker m. 206-478-0941 o. 206-448-6400 egillette@windermere.com Makeseattleyourhome.com
phone (206) 818-5576
email julia.eaton@axiahomeloans.com
WEB juliaeaton.axiahomeloans.com
➧ INVESTMENT, from Page 1
based solely
Private boutique high-rise building. Fabulous SW views, 2,720 square feet, two 2 bedroom suites, one level, and tasteful high-end finishes.
GILLETTE
5 upgrades for under $5,000 to put your home at the top of
every buyer’s list
It’s a sobering truth of real estate that sellers often have to spend money to make money. Even if your home is relatively new, you still face costs associated with getting it ready to show, such as repainting interior rooms or hiring professional cleaners and stagers. If your home could use some TLC and updating, spending as little as $5,000 on key upgrades could improve its appeal for buyers - and ensure a speedier sale at a better price.
Here are five upgrades you can make for under than $5,000 to help put your home at the top of every buyer’s must-see list this spring.
1. Upgrade your entryway
Replacing an old, dated or worn entry door can be a cost-effective way to ensure buyers get a good first impression when they walk in your house. Whether you choose a fiberglass, wooden or steel model, installing a new entry door can cost a few thousand dollars, yet the return on investment at the time of resale can be significant. A fiberglass entry door returns about 72 percent of its investment, while a steel door recoups more than 100 percent of its value, according to Remodeling Magazine’s Cost vs. Value report.
Enhance your new door with attractive plantings, fresh paint and clean windows around the entryway to create a memorable, attractive entry for just a few thousand dollars.
2. Increase natural light
More buyers are becoming aware of the mood- and productivityenhancing benefits of natural light, and homes with big, bright windows have always been in demand. Adding windows to a room can be a costly, timeconsuming affair. Not so with adding a skylight. For well under $5,000 and in just a day or two, a professional can install an Energy Star qualified, solar powered noleak fresh-air skylight, like those from Velux America. Professional
installation costs nationally ranges from around $900 to $2,325, with an average of $1,400, according to HomeAdvisor.com.
The low installation cost will leave you plenty of budget to enhance the skylight upgrade even further with energy efficiencyboosting solar-powered blinds. The skylight and blinds are operated by remote control and the blinds are available in designer colors and patterns to enhance your décor. The products, as well as installation costs, are eligible for a 30 percent federal tax credit to further reduce the cost of the improvement.
The most popular rooms in the home for fresh air skylights are baths, where they provide privacy in addition to natural light, and kitchens, where they vent cooking odors and humidity naturally while brightening this much-used workspace. Visit www.veluxusa. com to learn more.
3. Beautify a master bathroom
Bathrooms and kitchens sell homes. Making a few cosmetic upgrades to even a small master bath can help increase a home’s appeal and value. For less than
$5,000 you can easily repaint, upgrade faucets, replace old cabinet hardware and add decorative touches like designer towels. If you’ve already done all that, take a look at the floor or countertops - two cost-effective upgrades that can wow buyers. Since counters don’t make up that much square footage in most bathrooms, replacing them with granite can cost just a couple thousand dollars. Tile flooring is also a relatively inexpensive way to improve a bathroom’s look and usability.
4. Heat things up in the kitchen
Kitchen remodels can offer high ROI for sellers, but a full remodel may be outside your budget. If you’ve already done the obviouslike repainting and decluttering - it’s time to look for a few more costeffective improvements that will appeal to buyers.
Just as in the bathroom, swapping old faucets and cabinet hardware with new designer options can enhance the appeal of a kitchen. Shabby, outdated appliances can hinder a speedy sale,
so consider replacing them with new ones. You don’t necessarily need to install top-of-the-line, highpriced appliances to make a good impression, either. Newer, Energy Star qualified appliances represent savings for buyers down the road.
5. Lavish landscaping
No single aspect of your home has a greater impact on a buyer’s first impression than the landscaping. A great front yard sets the tone for the rest of the home, appealing to buyers on a number of levels, including beauty, practicality and savings.
With $5,000, you can
➧ DECK, from Page 1 decks require major maintenance every one to two years. Nail pops and splinters are common safety hazards with wood decks, as are cracked, warped and rotted boards that need to be replaced. Plus, wood decks must be refinished every year or two, a project that can cost $450 to $850 per year and take an entire weekend or longer to complete.
Capped composite decking from Fiberon will never splinter, crack or require staining, unlike wood decking. This composite decking is so durable that it comes with the industry’s first stain and fade warranty for up to 25 years. Typical maintenance requires just a few hours a year to clean the surface with a deck brush or power sprayer. Visit www.fiberondecking.com to learn more.
Eco-friendly
Many people believe wood is a more environmentally friendly option than composite decking. In actuality, the opposite is true. Composites are created from recycled materials and keep waste out of landfills. Fiberon alone prevents more than 50,000 tons of plastic and other waste from ending up in landfills or incinerators every year. Composite decking also saves trees. In addition to using locally sourced plastics, Fiberon composite decking includes wood scraps
accomplish a lot in terms of landscaping. You can sod a small front yard, add decorative planting beds to a lush lawn, or even install shade trees that will both beautify the yard and enhance the home’s energy efficiency in summer. Decorative concrete stamping of walkways and driveways is another cost-effective way to improve a home’s curb appeal.
Whether it’s a buyer’s market or a seller’s market, no one wants to see their home linger long before selling. A few simple upgrades can help ensure your home gets plenty of attention this spring selling season.
(BPT) acquired from nearby cabinet and door manufacturers.
Furthermore, just because it’s wood doesn’t mean it doesn’t contain chemicals. In fact, most wood lumber is pressure-treated with different chemicals to boost its integrity and make it last longer. Additionally, because wood is susceptible to bugs like termites, you might need to treat the space to prevent infestation. Termites, of course, are not a concern with composite decking.
Appearance
Wood is undeniably beautiful and always blends nicely with the natural elements of the outdoors. But thanks to advanced technology, composites mimic real wood so closely that often you can’t tell the difference. This is particularly beneficial if you want the look of an exotic species without the upkeep. Today, capped composite technology allows for realistic wood coloring and embossed grain patterns.
Bottom line
When planning a new deck, don’t forget the impact your material choice will have on the project. Get the facts and make the right decision so you can enjoy your outdoor spaces to the fullest.
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