Resources Smart Moves Blog The Rebate Debate | Main Menu | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
|
| The Rebate Debate |
|
|
|
|
The great debate of ’08 is much less about party nominee for president than the tax rebate that will soon be going out to Americans. One set of professionals tend to think that most Americans will spend their rebate and will provide a boost to the economy. The contrasting viewpoint is that the money will be saved or used to pay bills. What no one seems to be talking about is the possibility that people might actually invest the money. Now, investing money does not equal putting it in a saving account that yields a percentage lower than inflation. That’s called a rainy day account and will ultimately be spent on something down the road that is ultimately frivolous. An investment is something that will return a value equal or greater to the initial amount down the road. There are a number of good investment tools out there. Stocks, Gold, ForEx, IRA, Mutual Funds…they can all be good investments. There are some other investments that can provide a great return in real estate though. It may not seem like it, but $600 can do a lot in real estate. Here are some great potential investments of a tax rebate in real estate.
Refinance You may not realize it, but refinancing a home can cost as little as $600. If you purchased a home when interest rates were high, then refinancing your home may be a viable option for you to save money every month on your house payment. As a rule, you want to recover your cost of refinancing in about 1 year in your monthly savings due to the lower payment. If you can’t recover your cost of refinancing in a year, it’s probably not worth the time and energy and your upfront cost could be better used somewhere else.
Landscaping A lot of landscaping can be done for $600 if you do it yourself. The sweat equity of landscaping provides the greatest benefit to real estate. The actual return of improved curb appeal is hard to quantify, but the benefit is undeniable.
Up-fit a kitchen and bathroom Fixing up a kitchen doesn’t have to be a huge expensive project. It can be as simple as changing light fixtures and cabinet hardware. Putting in a new faucet or a tile backsplash can do go a long way in a kitchen that needs some TLC. Repairing cracked grout or broken tiles in a shower can make a big difference in a bathroom as well.
Credit Repair For individuals with delinquencies and judgments on their credit reports, paying on these prior bad debts can go a long way in improving credit scores in order to purchase real estate further down the road. The better your credit score the lower your interest rate. The return on your investment will be a lower interest rate due to improved credit. |
| < Prev | Next > |
|---|
