Can Your House Help You Build Wealth?

Can your house help you build wealth?

Can your house help you build wealth? The most obvious answer is ‘yes’; you can sell the property at a much higher price and use the money for investment and/or to buy another property. However, there are several other ways your house can help you build wealth.

4 Improvements which can increase your home equity

Here are 4 ways you can increase the value of your property.

  1. Attic bedroom – If possible, transform your attic into a bedroom; it will increase the count of bedrooms in your house.
  2. Additional bathroom – An additional bathroom, even if a half bathroom, can make it lucrative to the potential buyers.
  3. Update kitchen - If required, update your kitchen and make it look clean.
  4. Increase closet space – Make functional closets in your home in order to increase storage space.

However, think twice before making a luxury upgrade, since every improvement might not be lucrative to all potential buyers. Therefore, it is better to make those home improvements, which will have mass appeal so that there are more chances to get better return on investment.

3 Ways your house can help you build wealth

You can use your house to build wealth in the following 4 ways:

  1. Develop the habit of saving money - Developing the habit of saving money, is a bit difficult. You will be able to realize this better if every month you struggle to save a specific amount as per your budget plan. However, you need to build this habit if you want to build a secure financial future and deciding to buy a home will give you the required motivation. To buy a home, you’ll have to save a certain amount as down payment. So, start saving this amount from this month, even better, from today itself. Then, after making the down payment, you’ll have to save a certain amount to repay the loan on time in order to stay current on the mortgage loan. By developing this habit, you’ll notice yourself that saving money will become relatively easier for you. With time, you can increase the amount you save per month and walk towards building a secure financial future.
  1. Take out a home equity loan if required - No one can predict when you’ll be in urgent need of money. For example, you may be in need of sudden cash due to a financial emergency. In such a situation, you can tap your home equity to take out a home equity loan. This is a type of secured loan, which you can take out from a lender by pledging your home equity. Your home equity is actually the difference between the present worth of your home and how much you owe on the property. Home equity loans are relatively of low interest rate in comparison to credit card loans since the former is a secured loan. However, it is not advisable to tap your home equity to make your credit card payments. Regardless of whatever purpose you opt for a home equity loan, make sure you repay the loan on time so that you don’t lose your home.
  1. Give your house on rent – If you already have a house and decide to buy another one in a different locality, then you can give your present house on rent. It might also happen that you need to move to a different place for your job. In such a situation, and especially if you need to relocate fast and don’t have time to sell your property, you can give your present house on rent. It might also happen that you don’t want to sell your property right now. In such circumstances, you can use the money you get from rent to buy another property at your new location; or simply you can take a property on rent, at the new location, and use the amount to pay your rent.

Apart from above, you can use your house as your party venue if you wish. Just calculate how much you need to pay when you need to reserve a place for your children’s birthday or celebrating other special occasions. So, the basic idea is to maintain your house for financial gain in future years.

This article has been contributed by Miranda Owen. She is a contemporary financial writer and social media aficionado. She is an active participant in a number of personal finance communities. Her forte lies in sharing her thoughts in a pleasing and disarming style. As a result, she has successfully grown a large number of readers in a very small amount of time.  She has written articles for several websites such as StackStreet, GeezerGuff and so on.

V-Day: Is it necessary to have a big pocket pinch on this day?

Do you think that it would have been better if 14th never existed in the month of February? At the same time, do you wait to celebrate this special day with your special someone? You don’t have to feel sorry if you think so. There are many people, like you, who have this mixed feeling. However, this year, you can subtract your worries from your enjoyment and only think about the special moments which you’ll spend together, which will stay with you as cherishing memories. How? Have a look at this article to know how to celebrate this V-Day without leaving a hole in your pocket.
Change your mindset – First of all, you need to change your mindset. You don’t have to buy an expensive gift for your valentine or take him/her to a fancy place in order to show how much you love and care. Remember that your valentine will value the attention and time you give him/her, which cannot be purchased with dollars.
Spend the whole day with your valentine – It is said that the greatest gift you can give someone is your ‘time’. So, if you’re usually stretched for time on a daily basis, then on this special day, take out time (if required, take a day’s vacation) and spend the entire day with your special person. Do something which both of you like and enjoy doing and don’t forget to utter the word “I Love You” at least once.
Gift a healthy fruit basket – Instead of buying expensive flowers, this year, try something new. Buy a nice basket and fill it up with colorful fruits which he/she likes. Instead of buying an already assembled basket, pick and choose on your own. A small tip – Buy some unusual fruits such as, lychees, star fruit, cherimoya, dragon fruit, etc. and enjoy savoring the taste together.
Arrange a romantic candle-lit dinner – If you live in a place where you can enjoy outside at this season, then you can arrange a candle-lit dinner at your backyard and give him/her a surprise. You don’t have to order expensive food. You can prepare what you’re good at; just have a nice wine to complement the food. And don’t worry if you can’t cook; this is the opportunity to prepare a home-cooked meal for the first time. The special person in your life will surely love and appreciate your effort to make the day so special. It is one of the best ways to celebrate Valentine’s Day in a frugal way.

Gift common item unusually – It is very common to gift flowers; but, how will you feel if you get a call from the reception at your office that there’s a flower bouquet waiting for you? You’ll be elated – right? So, make your valentine experience this feeling. Moreover, his/her co-workers will appreciate this nice gesture and will increase the significance of your gift, much more. You can watch his/her joy when you meet each other in the evening. It is an excellent gift idea if you have to go to work and cannot spend the entire day with each other.
Make your valentine revisit the past – If your valentine has shared with you where he/she loved to visit as a child, you can secretly take him/her to that place. Just take a walk and ask how he/she is feeling. Do not forget to click pictures so that he/she can keep it as a special memory of this V-Day.
Spend time reminiscing – Make a list of the things both of you have accomplished together as a couple. Now, take out time, sit together and discuss the strengths of each other, the challenges both of you have faced and how you overcame them. It will help you celebrate the depth of your relationship and how both of you enjoy each other’s company.
And, the final idea – Why not make your own Valentine’s Day? That is, if you somehow cannot enjoy on February 14th, why not plan the celebration a day before or after? It will help you celebrate your own V-Day, as you want, at a relatively low cost. And, what matters is not the day, but the time you spend together which will create memories to cherish lifelong.​

Buying a House with Gold

How many ounces of gold does it take to buy a house?

People save all their lives just to get a decent home for their family. Whether you’re living in a first or third-world country, a house will always be expensive and you can never own one without having serious amounts of monetary investments.

Gold investments aren’t really the best way to pay for a house. The physical commodity is usually treated as hedge to a bad economy and should only be used for emergency purposes. Take Germany for example. BullionVault mentions that the Bundesbank, Germany’s Central Bank, boosted its good reputation when it chose to keep all of its gold even at two-decade lows back in the 90s. The country looks at its gold as last resort and should it sell all of its reserves today, it would be able to support its economy for many decades.

However, if in case investors decide to sell their gold reserves for a house, there’s no one stopping them. After all, a house is a great investment that can be passed down to future generations. If historical data tells us something, it’s that gold prices can skyrocket in just a few years. In 2001, gold was merely selling at $270 per ounce. Ten years later, gold prices soared to around $1,800 per ounce. If you had gold investments back in 2001, you would’ve made a $1,530 profit from each ounce of gold investment in 2011. And if you’re living in one of the 10 U.S. cities with the cheapest home prices, about 40 ounces of gold could get you a decent home.

Today, the world is living in a time where money is being destroyed by central banks. The European Central Bank’s (ECB) current stimulus is quite scary since it follows the pattern of the U.S.’ recently-concluded Quantitative Easing (QE) that bought $80 billion worth of bonds a month. Some say that the U.S.’ QE has worked but in reality, it put America deeper into debt. It may have helped stabilized the U.S. economy in the short term but unemployment is still relatively high in America. In addition, monthly U.S. home sales continue to decline, small stores are closing, and businesses are still borrowing less.

As a result of sudden events that could negatively affect the economy such as aggressive government spending via QE, consumers are left waiting for lower house prices, which will never happen since their savings are getting worn down by currencies that lose value over time. Quantitative easing also means printing more fiat money and each time the government adds a new dollar in circulation, it decreases the value of each existing dollar. Because of this condition, perhaps it’s not such a bad idea to use gold for purchasing a new house. After all, gold, apart from its use as hedge to a bad economy, is also used to preserve wealth. If you’re thinking about purchasing a house in the future, perhaps making gold investments now, no matter how little, can help in the long run.