Sometimes finding the money for a refit or addition can be difficult, but with a little creative thought, you could squirrel away your mortgage deduction tax savings to finance home improvements and maybe even some luxury treats. These illustrations show how a home owner could spend their savings at various stages of life to improve their home and their lifestyle. They are based on estimates of a $200,000, 30-year loan at interest of 5%.
Year 1– Accumulated savings of $2,250
Joe and Mary decide to upgrade their old water heater with a new high efficiency gas one for $1850 including installation. This would leave $400 for the latest game console package.
Year 5 – Accumulated savings of $10,895
Joe and Mary now have two children so decide to put $10,000 into a college fund. The fund could pay for a big chunk of freshman year tuition at good state schools in 13 years. The remaining savings are enough to pay for new photographic equipment to document their journey from kindergarten to college.
Year 10 – Accumulated savings of $20,756
Joe and Mary decide to revamp their kitchen with a minor kitchen remodel costing $20,000. Seeing the shiny new kitchen countertops, they decide to splash out on some luxury kitchen equipment with the remaining savings.
Year 15 – Accumulated savings of $29,297
Now that the children are teenagers, Joe and Mary earmark $16,000 for a remodel of the downstairs bathroom, a new security system for $3,000 and a home theatre system complete with new television. There’s even enough left for the whole family to have a spring break vacation in Hawaii for $5,500
Year 20 – Accumulated savings of $36,154
Joe and Mary decide to give the exterior of the house a facelift and replace the wooden windows throughout the house for $11,000. Mary’s tired of her desk job so she spends $21,000 of the savings to build her own yoga studio. There’s even enough left for a hot tub for the back yard ($4,000).
Year 30 – Accumulated savings of $42,819
With grandchildren on the way, Joe and Mary add a swimming pool for $30,000. There’s enough for a second honeymoon and a bottle of Cristal to celebrate with.
If you’re interested in learning more or have questions about Stephenville homes or any Erath County homes, then please contact us. It would be our pleasure to assist you with your real estate needs.