If you have decided to do some Home improvement, you are probably interested in learning more about financing options and cost estimates. In this article, we’ll explore the cost of home improvement projects and how you can get the best return on your investment. After all, you’re investing money in your house, so it’s important to do everything you can to make it look beautiful. However, before you start tearing down walls, adding bathrooms, and painting the exterior, it’s important to know exactly what you’re getting yourself into.
Home improvement projects
Depending on the type of home improvement project you’re considering, the results can greatly impact the resale value of your property. More individualized projects will decrease the resale value of your home. For example, a home recording studio might not appeal to a young family, and redesigning it will only turn off those buyers. A $10,000 kitchen range and marble floors in the bathroom may look great, but no potential buyer will pay that much for these improvements.
When it comes to home improvements, there are two main goals: personal enjoyment and home value. Both objectives are equally important, but often overlap. For example, remodeling the kitchen is a top priority, as outdated countertops can cost you a sale. Likewise, adding more light and energy-efficient fixtures will raise the property’s value and add to its curb appeal. In addition, a home with a more modern kitchen may be more appealing to buyers.
Cost
According to the U.S. Census Bureau, Americans spent $450 billion on home improvement projects in 2015 and 2016. These improvements ranged from gutting a kitchen and bathroom to adding a backyard shed, home security system, or other home features. Some homeowners scraped their savings for unexpected repairs, while others took out a home equity loan to finance their home improvements. Project costs varied greatly, depending on city and neighborhood. Here are some tips to keep your home improvement costs in check.
Consider your budget when planning home improvement projects. A new roof may be necessary for maintenance, while an in-ground pool may increase the appeal of a property to potential buyers. However, you must consider that home improvements can be costly, ranging from $4707 to $10460 on average. If you’re planning to do a complete overhaul, you’ll need to allocate an additional $2,000 to $50,000 for the new roof and the associated costs.
Financing options
There are several different ways to finance your home improvement project. You can use your savings, credit cards, or other unsecured loans to fund the project. If you have no collateral to back your loan, paying cash for the home improvement project is an attractive option, as it gives you faster access to the funds and there is no interest to pay back. Your bank can also provide you with helpful information on different financing options. Wells Fargo, for example, offers a financing comparison tool and tips for home improvement financing.
One of the most common financing options for home improvement projects is a personal loan. A home equity line of credit (HELOC) is essentially a second mortgage, and has a lower interest rate than a traditional personal loan. However, it is important to consider the amount of money you can afford to borrow before making any decisions. Personal loans may also require more paperwork and may carry higher interest rates than home equity loans. If you have a good credit score and want to make home improvements quickly, a home equity line of credit may be a great option.
Return on investment
The ROI (Return on Investment) of a home improvement project varies from project to project depending on the time, materials, and labor costs involved. A do-it-yourself project can give you a better ROI than hiring a professional. It can also be easier to do, too. The return is calculated by subtracting the cost of the original project from the total cost of the completed project. In the case of a renovation project, the ROI is higher than that of a major addition.
While the ROI for home improvements varies, there are some projects that offer high returns and some with lower ones. Home improvements may be a good idea if they increase your property value or improve your quality of life, but they’re not necessarily profitable. Investing in a project’s ROI should be based on the projected value of the finished product, not on the sentimental aspects. If you’re unsure whether a particular home improvement will increase your home value, it’s worth checking with a professional to get an accurate estimate of what it will cost.