Unlike most other investments, your home can actually make money for you in the coming year. Here are three ways to manage an uptick in cash flow during the economic downturn.
Get paid for energy-efficient improvements
Earn up to $500 in energy efficiency tax credits and save a bundle on monthly utility bills with improvements made now through December 31. Qualifying home improvements include everything from weatherstripping to windows to roofing, and local utility and state rebates may compound your savings. Visit the Tax Incentives Assistance Project (TIAP) site for more details.
Invest in projects that improve home value
You can't control the ups and downs of the housing market, but you can take steps to steady your home's value and get greater returns when you sell. Make basic maintenance chores your top priority, because neglecting the little things can lead to big expenses later.
From there, consider improvements carefully and spend your time and money on those that are most cost-effective. For guidance, look to Remodeling Online's 2008-09 Cost vs. Value Report, which provides data on popular improvements and costs recouped, according to U.S. region and compared with 2007 findings.