Home improvement can add value to your property and enhance your quality of life. While not all improvements offer the same level of satisfaction, you can find your own joy in a well-decorated living room, a more spacious kitchen or a garden. But it’s important to weigh the cost against the potential return when considering a renovation project.
More time at home during the pandemic has encouraged many homeowners to renovate their spaces. While the boost in activity may have been spurred by social distancing and other pandemic-related lifestyle changes, research suggests that a good chunk of home improvement projects are for purely aesthetic reasons.
A good rule of thumb for home improvement is to keep projects on a par with the neighborhood. If you outpace the neighbors with an expensive hot tub or a fountain for the yard, buyers are likely to think twice about your property’s worth.
Most home improvement projects aren’t cheap. And while three-fourths of respondents to our recent survey said they were able to pay for most of their repairs/improvements without tapping into savings or going into debt, some high-dollar improvements remain out of reach for many. The good news is that there are plenty of ways to finance a project, from cash-out refinances to contractor arranged financing and more. The key is to be prepared and work with a trusted financial adviser.