Home improvement is an important aspect of home ownership. Whether you’re upgrading the kitchen, installing new windows, or adding an extra bathroom, the benefits of a renovation are numerous. It’s a good idea to plan a project, however, before getting started. There are many ways to ensure your renovations will meet your needs and budget, and that they’re a worthwhile investment.
The home improvement market is in the midst of a renaissance. Major vendors are competing on price and differentiation. Private label retailers are also gaining traction. This has created a more competitive marketplace, and has led to increased competition for consumers.
According to a survey conducted by Axiom, the Minneapolis marketing firm, a majority of Americans plan to do some form of home improvement in 2021. About 85 percent of homeowners plan to begin a remodeling or renovation project in the first half of the year. They are also planning to spend more time on their projects than last year. Most plan to hire a contractor, while others are pursuing a DIY approach.
When renovating your home, keep in mind that the amount you spend will affect the value of your house. Invest in upgrades that will appeal to a wide audience. Adding luxury items is not always the best way to go. You may end up spending more on material than you should, and that won’t help sell your home. For instance, you won’t want to pay thousands of dollars for a high-end kitchen range, especially if you’re trying to sell your home. Instead, look for midrange upgrades that are still attractive to a wider audience.
Many home improvements can be expensive, but a few simple changes can improve the appearance and functionality of your home. Adding a kitchen island or pantry, for example, can increase the number of counter and food storage spaces. Also, replacing windows can lower your energy costs. Vinyl windows can improve insulation, and new doors and windows can add more natural light. Similarly, an updated shower area can help rejuvenate a drab bathtub.
If you’re not in the position to pay for a major remodeling or renovation project, you can use a home equity loan to cover the expenses. These loans are typically installment loans with fixed monthly payments, and the funds are drawn from your home’s equity. However, the interest rate and terms will vary depending on the type of loan you choose. Generally, the maximum loan amount is 85% of the value of your home, and you must also meet certain requirements by the municipality where you live.
Before you apply for a home improvement loan, you’ll need to have a strong estimate of the cost of your project. Banks look favorably on applicants who have done their homework. Your mortgage lender is usually the easiest source of cash, but if you don’t have a home, you can apply for a personal loan or check out online lenders. Personal loans are usually higher in interest, but can offer flexibility and are often offered with an introductory 0% APR period, meaning there’s no interest for a full year.