Whether you’re planning a simple refresh or a full-scale renovation, it’s important to stay up-to-date on the latest design trends. Sellers who make tasteful updates can generate increased buyer interest, and buyers should factor renovation costs into their overall budget.

Even if you don’t have plans to sell, we advise our clients to be thoughtful about the finishes they select. Out-of-style elements could cause your home to feel dated quickly.

To help, we’ve rounded up five of the hottest home design trends for 2020. Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment.

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1. IN: Sustainability / OUT: Fast Furniture

Consumers have become increasingly eco-conscious. Many are shunning the “fast furniture” popularized by retailers like IKEA, opting instead for higher-quality pieces that utilize non-toxic, sustainable materials. At the same time, there’s been a noticeable shift toward individuality in today’s interiors. Instead of following the latest fad, homeowners are investing in items that will “spark joy” (=C3=A0 la Marie Kondo) for years to come.

To incorporate this trend, try refinishing your existing furniture while layering in new pieces made of eco-friendly materials like salvaged wood or rattan. And to accessorize your room, mix sentimental items with newer finds to create a truly personalized space.

2. IN: Cozy / OUT: Cold

Designers are moving away from cool grays, industrial finishes, and stark modernism. In 2020, there’s a big emphasis on creating warm and cozy spaces through color, texture, and shape.

This year, expect to see a move toward warmer neutrals, earth tones, and nature-inspired shades of blue and green. Warm metals, like gold and brass, will also continue to trend. And hardwood floors are heating up, as cool gray and whitewashed finishes make way for classic choices like walnut, mahogany, and oak in richer and darker tones.

3. IN: Bold / OUT: Boring

Bold is back! After years of neutral overload, vivid colors and prints will take center stage in 2020. Expect to see geometric designs, color blocking, and floral patterns on everything from pillows to rugs to wallpaper. Color is coming back to kitchens, too, and two-toned color schemes continue to gain steam.

Of course, clients always want to know how design choices could impact their home’s value. The reality is, neutral finishes are still the safest bet for resale. If you’re prepping your home to go on the market, stick with non-permanent fixtures—like artwork and accessories—to brighten your space.

4. IN: Nature / OUT: Industrial

Biophilic design centers around the health and wellness benefits of connecting with nature, and it’s impacted the latest trends in color, prints, and materials. Floral and botanical patterns are hot right now, along with nature-inspired hues, like blues, greens, and earth tones.

We’re also seeing a heightened use of houseplants and natural materials, like wicker, rattan, and jute. This infusion of nature coincides with a decline in the popularity of urban-industrial fixtures. Designers predict that concrete floors and Edison light bulbs are on the way out.

5. IN: Functional / OUT: Fussy

In 2020, homeowners want design that’s beautiful and liveable. Low-maintenance materials are surging in popularity. Engineered quartz—which is more durable than natural stone—is now the #1 choice for countertops. Waterproof, wood-look luxury vinylis the fastest-growing segment in flooring. And improvements to water and stain-resistant performance fabric has made it a mainstream option for upholstery.

Now that functional is hot, what’s not? Designers say mirrored furniture, open shelving, and all-white kitchens are too impractical for today’s busy families.

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DESIGNED TO SELL

Want to find out how upgrades could impact the value of your home? Preferences vary by neighborhood and price range. We can share our insights and offer tips on how to maximize the return on your investment. Contact us to schedule a free consultation!

Homeownership offers many advantages over renting, including a stable living environment, predictable monthly payments, and the freedom to make modifications. But one of the biggest benefits it offers is the opportunity to build wealth over time. Researchers at the Urban Institute found that homeownership is financially beneficial for most families, and studies have shown that the median net worth of homeowners can be up to 80 times greater than that of renters in some areas.

So how does purchasing a home help you build wealth? And what steps should you take to maximize the potential of your investment? Find out how to harness the power of home equity for a secure financial future.

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WHAT IS HOME EQUITY?

Home equity is the difference between what your home is worth and the amount you owe on your mortgage. So, for example, if your home would currently sell for $250,000 and the remaining balance on your mortgage is $200,000, then you have $50,000 in home equity.

The equity in your home is considered a non-liquid asset. It’s your money; but rather than sitting in a bank account, it’s providing you with a place to live. And when you factor in the potential of appreciation, an investment in real estate will likely offer a better return than any savings account available today.

HOW DOES HOME EQUITY BUILD WEALTH?

A mortgage payment is a type of “forced savings” for home buyers. When you make a mortgage payment each month, a portion of it goes towards interest on your loan, and the remaining part goes towards paying off your principal, or loan balance. As your loan balance goes down, your home equity goes up.

Additionally, the value of your home generally increases, or appreciates, over time. And when you sell it, even if you’ve only paid off a small portion of your mortgage, you get to keep 100% of your property’s appreciated value. That’s the wealth-building power of real estate.

WHAT CAN I DO TO GROW MY HOME’S EQUITY FASTER?

There are two basic ways to increase the equity in your home:

1. Pay down your mortgage. Some homeowners do this by adding a little extra to their monthly payment, making one additional payment per year, or making a lump-sum payment when extra money becomes available. Another option is to decrease your amortization period. For example, if you can afford the higher monthly payment, consider refinancing from a 30-year or 25-year mortgage to a 15-year mortgage
   
2. Raise your home’s market value. Many homeowners enjoy do-it-yourself projects that add value at a relatively low cost. Others choose to invest in larger, strategic renovations. Keep in mind, you won’t necessarily get back every dollar you spend on upgrades, so consult a professional before making any major investments.

A word of caution: neglecting routine maintenance could decrease your home’s value (and equity), so be sure to stay on top of recommended upkeep and repairs.

HOW DO I ACCESS MY HOME EQUITY IF I NEED IT?

What if you want to tap into your home’s equity while you’re still living in it? There are several ways to borrow against your home equity, depending on your needs and qualifications:

1. A Second Mortgage (or Home Equity Loan) enables you to borrow a lump sum, which you are responsible for paying back—with interest—over a set period of time. Most second mortgages have a fixed interest rate and provide the borrower with a predictable monthly payment.
   
2. With a Cash-Out Refinance , you refinance your mortgage for a higher amount than you currently owe. Then you pay off your original mortgage and keep the difference as cash. This option may be preferable if you have a high interest rate on your current mortgage or prefer to make just one payment per month.
   
3. A Home Equity Line of Credit (HELOC ) is a revolving line of credit, similar to a credit card. It allows you to draw out money as you need it. The interest rate on a HELOC is variable, so your payment each month could change depending on how much you borrow and how interest rates fluctuate.
   
4. A Reverse Mortgage enables qualifying seniors to borrow against the equity in their home to supplement their retirement income. In most cases, the loan (plus interest) doesn’t need to be repaid until the homeowners sell, move, or are deceased.

It’s important to note that borrowing against your home’s equity isn’t always the best option, and it carries the risk of foreclosure if you default. Ask us for a referral to a lender or financial adviser to find out if a home equity loan is right for you.

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WE’RE HERE TO HELP YOU

If you’re ready to begin building equity with a new home purchase, grow the value of your current home, or access your equity through a home sale or loan—we can help. Contact us today to schedule a complimentary consultation!

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.