Home Improvement – What is it and Why Should You Do It?

Home improvement, also known as home repair or reworking, is the process of remodeling or renovating a home or other building to improve its comfort, function, and appearance. The term may refer to any part of a residential or non-commercial property, such as adding an addition or replacing the roof, painting or installing new flooring.

Home improvements can be expensive, and it’s important to carefully consider the pros and cons of each project before starting. Some projects have a high return on investment (ROI), while others don’t pay off at all or only bring in a small amount of money. A good place to start is by reviewing your current spending on home improvements, as well as what you’d like to achieve with future renovations.

The most common reason homeowners give for undertaking a home improvement project is to improve the livability of their homes. In fact, the National Association of Realtors (NAR) found that even during the COVID-19 pandemic, a majority of people who undertook home upgrades did so for that purpose alone. This may explain why more than half of respondents to the NAR’s 2022 Remodeling Impact Report cited increased enjoyment with their homes as a result of their renovations.

Another common reason homeowners give for doing home improvement projects is to add value to their homes. However, this is less of a motivation for most homeowners than it was in the past. In fact, only 20% of homeowners considering home improvements in the next two years say it’s because they want their houses to appeal to potential buyers. By contrast, 54% of those planning projects cite making their homes more comfortable and 33% note that their homes simply need to be updated to make them feel better about living in them.

Many homeowners struggle to find the funds to carry out their home improvement projects. For example, the NAR’s survey showed that 17% of those who undertook home improvement projects during the pandemic had to cut back on discretionary spending or sell items in order to do so. Another 14% had to tap into or exhaust their emergency savings, and 8% had to borrow from a financial institution.

For those who choose to finance their home improvement projects, there are a number of different loans available on reasonable terms. One of the most popular is a home equity loan, which allows you to use your house’s equity as collateral. There are also unsecured personal loans that don’t require any collateral and allow you to borrow as much or as little as you’d like. Another option is to get a cash advance, which provides you with a lump sum of cash in exchange for a fee. This type of loan is ideal for larger projects, such as a bathroom remodel, where you’ll need to purchase and install new fixtures. However, it’s important to remember that getting a cash advance isn’t a short-term solution and can come with significant fees and interest.