During times of uncertainty, spending on your home is a comforting investment. According to a recent survey, over 72% of homeowners say they will have a home improvement project on their to-do list by 2022. While spending on your home can be an investment, make sure the project is worthwhile before you invest.
The survey also found that consumers plan to increase their home improvement spending in 2021. While more than two-thirds of surveyors plan to do some home improvement projects on their own, a growing number plan to hire a professional. The most common categories of home improvement projects involve work outside the home, such as building a deck, fence, or patio. But some respondents plan to do more complex projects.
In fact, the Axiom survey found that consumers plan to spend more time on their projects in 2021 than last year. The survey asked consumers about their recent home improvement projects and their plans for the future. Ninety percent of DIYers plan to spend more time on home improvement projects in 2021 than last year.
A large portion of the DIY home improvement market consists of unlicensed companies. While many of these companies are accredited by professional associations, not all are. Therefore, it is important to check that the contractor is a licensed contractor, has insurance, and has references that the consumer can verify.
Another way to boost your home’s resale value is to upgrade its interior. Simple updates such as a new coat of paint, a new window covering, or a new front door can make a home look better. These upgrades also allow home sellers to stage their homes for sale.
Home improvement projects are tax deductible, which can help you offset the costs of the work. However, make sure you keep track of the labor costs and itemize all receipts for the project. You can also consult with a CPA before spending any money on your home.
The Harvard Joint Center for Housing Studies estimates that home remodeling will hit a peak in the first half of next year. But, the center’s chief economist, Mischa Fisher, says the peak is likely to decelerate to a sustainable growth rate in the second half of the year.
Major vendors are competing on price and differentiation, while private labels are entering the market. This increases the competition in the home improvement market. It is important to choose upgrades that appeal to a wide audience and are of high quality. If you’re planning to sell your home, make sure that the upgrades you choose are worthwhile. For example, marble flooring in a bathroom might not be desirable to buyers.
A home equity line of credit is also a viable option for homeowners looking to boost their home’s resale value. While it is more expensive than a personal loan, the home equity line of credit can provide cash for home improvement projects. However, this type of loan requires more extensive underwriting than a personal loan.