Equity is a fancy way of estimating the actual value of a piece of property, and it is a very serious consideration for anyone who owns a home or plans on owning a home. The equity will range according to the actual perceived value of a piece of property, by the value of neighboring properties, the true monetary value of the things in the home, for example, the wood floors or the antique tin ceiling and how much money is still owed on the property. With all this in mind, it can be very hard to know just how much you can or even should invest in your home, even for something as simple as a new floor.
However, the equity should be determined by one thing – how long you plan to be at that property. Regardless of your budget, if you know you will only be living somewhere for a few years, it makes no sense to invest heavily unless you are sure you can immediately sell the property and get full value back. Since most people buy a home with a plan to stay in it for a long time, this is where you actually see heavier equity investment in their homes.
Your floors are worth a surprising amount of equity, as long as they are fitting for the rooms, made of good quality materials, and are maintained well. Once again, the actual amount you wish to invest in your floors does need to be calculated by several factors, including:
• The length of time you plan to live there
• The quality of the materials, and their longevity
• The actual cost of the materials
• The cost of the mortgage
• How badly the new floors are needed to improve the appearance and efficiency of the home.
While the flooring and carpet stores in the Los Angeles area will not actually be able to tell you how much of a percentage of your mortgage should be reinvested back into the home, they are an excellent source of knowledge about the true value of flooring and how long it will hold up. They can work within your budget restrictions and help you find the best quality materials within your price range, and can let you in on the cost for installation, the longevity and maintenance costs of the flooring, and can essentially help you make a great decision for your flooring equity.