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Sweat Equity - The Best Return In Home Investments

Making home improvements through sweat equity can increase the economic and personal value of your home, which is good because if you are like most people, your home is your most valuable asset.

Renovating your home, however, is still a risky proposition because even though doing so may increase the value of your home, the chance of you recovering the actual cost of - much less getting more than the cost of - the improvement is slim.

Even those improvements that return the most - kitchen and bathroom remodels - usually return only about 90% of your investment. Add in interest and associated costs if you take out a home improvement loan to finance the project, and it starts to look like you'll do just as well parking your money in a retirement account - or a mattress.

Unlike with some other investments, you get the best return on your home investment by borrowing and spending as little money as possible. In other words, sweat equity pays big dividends.

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Home Equity - The Golden Rule of Investing Sweat
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