5 Smart Ways to Reinvest Your Tax Return

If you’re fortunate enough to receive a tax return this year, you may be happily dreaming about the many ways you could spend it—maybe a well-deserved vacation or the latest smartphone release. While those aren’t bad ways to spend your bonus from Uncle Sam, you could also use the unexpected funds to increase the value of one of your most important investments: your home.

A windfall from a tax return—no matter how small—is the perfect way to increase your home’s worth. Here are some value-boosting ways you can put your tax return to good work:

1. Install or refinish a deck. Outdoor living areas are more important to homebuyers than ever in the wake of the pandemic. If your deck is in need of repair, or you don’t have an adequate outdoor gathering area, consider letting your tax return fund an eye-catching and functional deck.

2. Refresh with paint. Whether it’s just one room of your home or the entire exterior, taking care of necessary painting projects is a relatively inexpensive and easy way to add value to your home. Painting is a great way to put even the most nominal tax return to good use for your home’s value.

3. Upgrade your landscaping. Today’s buyers have to make quick decisions, so curb appeal matters a lot. Updating your yard with native plants and trees will add environmental appeal to your home and provide an easy-to-care-for yard for the new owners, which are important selling points to emphasize.

4. Make your home smarter. Smart-home technology, from programmable thermostats to automatic lighting, is highly sought-after by today’s homebuyers. Use your tax return to invest in updating your home with the latest smart-home features.

5. Create a home office. With so many shifting to permanent or hybrid work-from-home scenarios, having a desirable office space in your home is a key way to add value in today’s market. Use your refund to outfit a space with an appealing desk and ergonomic chair, high-speed internet, work-friendly lighting and the right amount of privacy, whether that means redoing the spare room or simply screening off an existing area.

Adding the above to your home will work wonders in terms of its value—and you may have a little left over for that getaway after all. 

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