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​Ways You Can Best Use Your Tax Return if You Buy a Home in Denver

April 19, 2017

When you are looking to buy a home in Denver, there are ways you can use your tax return to help you with this investment. For many, they just use their tax return on items they want or trips. But you can use your tax return to put towards your next major investment. From important savings opportunities to investments for your home, to ways to make your current home sell more quickly, there are many smart choices you can make.

Save for Down Payment, Insurance or Emergency Fund

If you are looking to put your entire return towards an investment, consider using your tax return towards your down payment. Given that your home will have so many valuable belongings in it, another consideration you can make investment-wise is to make sure you are purchasing enough homeowner’s insurance. A tax return is a great way to make sure you are not under insuring yourself without having to come up with extra money each month. Plus, discuss with your insurance company if there are any benefits or savings to purchasing a policy all at once opposed to a monthly basis. Next, if you do not have any emergency savings, a tax return is a great start. This way, if something happens, you have money there to help fix the problem.

Invest in Furniture, Appliances, Décor and More

When purchasing a new home, you may have different layouts than your existing home. In some cases, you will need to purchase new furniture or items to make the new space work. If you need to do this, maximize your previous investments by selling them. Then you can take the money you have made plus your tax return to purchase new furnishing for them home. Another important area to look at is the kitchen. You will most likely use your refrigerator, microwave, oven and dishwasher several times throughout the week. If the existing appliances are damaged or are not working properly, it is crucial to replace them. There’s no better time when you have the money to invest. Plus, many stores offer great sales just around tax time. Even if you can’t move into the home just yet, you can always purchase items on a great sale and put them in storage or see if there are ways for the store to hold them for you.

Help Your Current Home Sell

If you are selling a home, a tax return can give you an extra boost to help you sell it. Does the home have not-so-great curb appeal? Take some time to update the landscaping or paint the house so it draws in more attention to prospective buyers. You can also work with your realtor and invest in staging to help appeal to buyers as well. You can also save money and if a potential buyer negotiates, having the extra money will help you come back and help if they ask for certain things.

Looking for additional ways to use your refund? Read U.S. News Money’s 10 Smart Ways to Spend Your Tax Refund. When looking to buy or sell a home, Giving Back Group has you covered. Plus, we will use 20 percent of our commission and donate it to the charity of your choice, in your name. Learn about the ways to give back during your move and benefits to donate real estate commissions to charity and call us at 303-881-4881 to get started.