Equity in the New Paradigm

Home equity is a subject that has received a fair amount of attention over the last couple of years.  With the housing market boom and then bust home equity has fluctuated all over the charts.   At the height of the housing market advertisements coaxing homeowners into using home equity loans for exotic vacations, new televisions, cars, you name it were commonplace features.   The more the market boomed the further away people were drawn from investing in their equity.  When people did use money to invest in their homes a general mentality centered on the premise that a homes equity could be increase by the homes exuberance.  Often upgrades were made purely for aesthetic reasons or to add more space to a home.   As homes got larger and granite countertops became more plentiful monthly upkeep became a more of a financial burden.   Suddenly, homes were not selling, equity was lost and people were left wondering, “why?”

The last 18 months has proved to be a conservative time for many people.  What we once looked at as disposable we are now seeing as precious.  Many feel fortunate to have a home and don’t foresee selling it in the immediate future.  There is still the question of equity and a home’s projected value.  In an equity market we believe that a new paradigm is taking shape.   A home’s worth now depends on its ability to perform without being a huge drain on resources.   When you make an energy investment along with quality aesthetic upgrades you are investing in a timeless feature that will not go out of style.  A home that consumes less energy and therefore is less expensive to maintain is a wise choice for the homeowner or a potential homeowner down the road.

A homes comfort is another positive outcome from an investment in energy efficiency. By upgrading the insulation and stopping unwanted air leakage it is possible for a home to stay warm in the winter and cool in the summer. Energy upgrades also address air quality issues.   Every time we use appliances, let the dog in, use different cleaning or beauty products, cough or sneeze we are introducing pollutants into our home.  These pollutants, along with pollutants that come from your house such as off gassing of paints, carpets, furniture or mold and asbestos issues create an unhealthy atmosphere.   Introducing mechanical balanced ventilation into your home greatly improves air quality and general comfort in a home.  A house that is comfortable and healthy greatly increases equity through and pays back by using less energy (less money) and less health risks for the homes inhabitants.        

When making your next investment and adding to or using the equity in your home, consider the longevity of your upgrade.   Will it go out of style in 10 years?  Will it break?  Will you get tired of it?  Turning your remodel into a ‘energy remodel’ or one that includes energy upgrades will stand the test of time and only increase your equity.