It may not be something you really want to think about in depth. Especially if that depth is underwater. But, there is a quick and easy way online for you to learn just what kind of investment you’re home has turned out to be.
The calculator, at CNNMoney, takes four factors into account. When you bought your home and how much it cost then, and the date of the last evaluation of its worth and what that dollar amount was. Given those data points, the calculator shows you the annual and total return on your investment, and how it stacks up against the average U.S. home, as well as stocks and bonds.
The beauty of this calculator is that you may learn that what looks like a bad investment would have been even worse up against the stock market or the average home in the United States in the same time period. The house in the example image lost $60k in value in just about three years during the heart of the economic crisis. No question it was a loss, but it would have been even worse for that owner to put their money into the stock market instead.
Obviously, that’s small consolation for the folks who never could get out from under that burden. But, as the market continues to strength, home prices are rising. And over the long term, some folks will weather the storm and outperform alternative investments.
Previously, we’ve talked about renovations that may help improve the value of your home. And there’s no question that keeping your home in good shape and looking good will help maximize its value when you’re ready to sell. I wanted to share this article, from HGTV, with you. “30 Tips for Increasing Your Home’s Value” includes those ideas, as well as videos, that can help you maximize the value of your home.