Tax Refunds Setting Off Home Remodeling and Purchases

Tax refunds for 2013 are setting off a new buying trend. In past years, many individuals or families receiving larger refunds would spend their refund money on paying off bills or new purchases. However, during 2013 there seems to be a growing increase in refunds being put towards home remodeling and land home package purchases. These purchases and projects are become popular for several reasons. Only one of which being the affordability of the option and use of the refund.

Remodeling for Value


Homeowners are concerned that certain areas may see loss of jobs in the job market. For this reason, they have turned to the what if possibilities that may be on the horizon. This means they are now looking for ways to increase the value of their homes for either sell or rental purposes. One of the best ways for them to achieve this is to handle remodeling projects that would increase the value the most while still being cost efficient. The best way many have found to do this is by using the money from tax refunds to fund the DIY remodeling projects. This way they are not dipping into savings accounts or monthly income and are able to produce the highest value increase for their property.

Remodeling for Safety


Some home owners have areas in their home that have needed work for sometimes. Wiring, heating, cooling and other issues may lead to the home owner wanting to make some necessary remodeling changes. Energy efficient changes are also a consideration for remodeling and safety. For example, a hot water heater in a home may be old with possible issues concerning pilot lights and other issues. In order to avoid these issues, a home owner may choose to use their refund to remodel the area and replace the hot water heater with a tankless model. Windows may not be up to par and would need to be replaced with higher quality storm windows. Carpets may be removed to reduce allergies and hardwood floors or tiles placed as a replacement option.

Purchase of Land Home Packages


Some refunds are being used for new land and home package down payments. Land and home packages are becoming increasingly popular with real estate agents due to their ease of sale and ease of obtaining mortgage. The down payments are considerably smaller and allow for the properties to move quickly. For this reason, many are choosing to move from rental properties to owned land by way of their tax refund.

These options for using a tax refund are ways that many people are choosing to prepare for issues such as loss of job or natural disasters. By being prepared and putting themselves in better safety and financial situations, the individuals or families are finding a greater peace than they would with quick purchases and vacation events using the same refund amount.

Amy Wright
Amy Wright is the Lead Editor of Remodeling Central. When she isn't playing with her dogs she is trying to remodel a classic Chicago style brownstone with her husband.

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