Real Estate NewsHow To Stretch Your Tax Rebate
If you"ve been trying to decide how to get the most bang for your tax rebate buck, look no further than your home.
Since July 23, the U.S. Treasury has been mailing out tax rebates ranging from $300 to $600 per taxpayer and the last rebates are due out this month.
While many financial planners say a tax rebate dollar saved is a tax rebate dollar earned, putting your tax rebate to work at home can also leverage some unexpected savings.
Among the best buys are energy-efficient purchases.
Not only do they reduce your utility bill, but some utility companies and municipalities offer rebates, discounts and other incentives to help encourage the purchases.
A good bet is replacing old, always-on refrigerators and instant-on televisions that continually draw power. The two are among the greatest energy drains in the household, according to the U.S. Department of Energy"s Energy Star program.
An Energy Star qualified refrigerator, for example, uses half the electricity of a standard 10-year-old refrigerator and will reduce your electricity bill by $35 a $75 a year compared to the old model, according to the Energy Star program. That means your 10-year-old or older fridge is using as much electricity as it would take to operate two similar Energy Star models. You"ll save even more if you replace older refrigerators and during the life of the new one it will just about pay for itself in savings -- especially if it comes with an energy-efficient rebate or other money-back promotion.
After refrigerators, televisions, VCRs and other old "instant-on" electronics demand the most power because even when they are off they spin your electric meter. This is true for appliances that use a remote control to turn the power on and off or have lighting displays. Energy Star televisions and VCRs draw 3 watts or less of power when turned off, consuming 75 percent less energy than the 12 to 13 watts gobbled up by older models, according to the Department of Energy.
Using rebates to buy insulation, caulking, weatherstripping and other energy saving materials and other Energy Star products, including air conditioners, washers, dryers and dishwashers are all purchases that can also help reduce energy costs.
"Install an attic fan, maybe even a solar-powered one," suggests Palo Alto, CA architect Judith Wasserman, who says attic fans help keep the home cooler in the summer. That reduces the need for air conditioning. In the winter a fan helps push rising warm air down to living areas.
Automatic thermostats, fluorescent bulbs and low-flow toilets, are among other devices that make good economic sense said San Anselmo, CA-based home inspector Mike Sterling.
Buying Equity
The California Real Estate Inspection Association says an annual home inspection is also a good investment because it allows you to keep abreast of conditions in your home before they fall into major disrepair.
"Constant upkeep not only makes a home more livable on a continuing basis, but also makes it less expensive to fix when the time comes to sell," the association says.
San Jose, CA real estate broker John V. Pinto says in many instances a home inspection will turn up drainage problems which plague many homes and can provide a breeding ground for mold and mildew.
"It"s not as sexy a subject as energy efficiency, but some of the worst damage to your home can be caused by poor drainage. For new grading all you need is a shovel. You probably have downspouts, but in most cases they just dump water right into the foundation. Get downspout extensions that divert the water away from your home," Pinto said.
"Bad drainage can lead to all those problems we"ve heard recently about mold. A stitch in time saves nine," he added.
Money well spent is also money spent on even small home improvements.
"Depending on how handy you are and where you live, material and labor costs vary, $600 could go a long way," says San Francisco, CA broker, Ray Brown.
"Install smoke detectors, a security system, new carpeting, new curtains or drapes. Build a fence," he added.
Landscaping, new doors, a new coat of paint can all help your home keep it"s curb appeal, an important selling tool.
"Paint your house. That is the improvement that gets the most return for the least money," says Joette Joseph, a branch manager for Alliance Title Co. in San Jose, CA, who conceded the largest rebates likely will only be enough to buy the paint.
"Do the work yourself," she added.
Calhoun suggested updating lighting fixtures or replacing interior doors with six-panel white doors that are more common and tend to brighten a home"s interior, especially a dark corridor.
"Or just replace the front door," he added.
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