If this is the first time you’ve owned one of our San Joaquin Valley Homes, your tax refund may be unexpectedly large this year. Congratulations on reaping one of the big benefits of home ownership: deductible mortgage interest that translates to more money in your pocket. You could just spend that windfall on a vacation or a new car – you’ve earned it. Or you can put it back into your biggest purchase so it continues to enhance your life for the years to come.
Go for The Upgrade
Did you want better appliances in the kitchen, the fancy outdoor area with a fountain, or the higher-end flooring for the entry? Your refund may now put those options within reach. Talk with one of our housing experts to see how you can use your refund to pay for the upgrades you want. You may even want to step into our Design Center to see what’s available. When you pay for these changes up front, you’ll save money in the long run because you won’t be amortizing their costs as part of your long-term mortgage.
Get A Decorator
The exterior of your home looks as beautiful as you imagined with the help of the renderings and explanations of the sales office. Unfortunately, your interiors look nothing like the model because you didn’t have professionals staging them. Use your tax refund to get experienced help with your interior design. With a small refund, try an online decorating service that typically costs a few hundred dollars, if you buy and arrange the furniture yourself. If you’re getting thousands of dollars back, spring for a professional designer who can both plan and execute your interiors.
Create A Deductible Fund
Although your home is solidly built to last, you can’t predict what unexpected problems may crop up in the future. Maybe little Johnny throws a baseball through the window or Jane pulls down a tree with her makeshift swing. Insurance is supposed to take care of things like that, but do you really want to file a $300 claim for a relatively minor incident that may raise your rates?
A house fund handles unexpected expenses that you need to pay out-of-pocket before insurance kicks in. This payment is also known as a deductible – the higher your deductible, the lower your annual premiums. Putting money into such a fund lets you increase your deductible and lower your annual premiums over the entire time you own your home. Your one-time investment in the house fund could add up to substantial savings when totaled over the many years you own your home.
Create A Maintenance Fund
Your house is going to look and feel new when you move in but it’s not going to keep looking like that forever. If you want your housing investment to appreciate in value, you’re going to have to keep it well-maintained. Some things come up only once a year, such as cleaning out the gutters or pruning shrubs, or once every few years, such as repainting the exterior or fixing cracks in the pavement.
Such occasional maintenance can put a significant dent in your budget. To prevent any financial hits, create a home maintenance fund that you can draw from for infrequent but necessary tasks. Your tax refund can act as a good foundation for the fund.
If you want more suggestions on how to use your tax refund for your home or just want to tour our models, please contact us.