• Home
  • Get a loan
  • Investing
  • How it works
  • About us
  • Blog
    • Peer to Peer Lending
    • Money Smarts
    • Debt
    • Savings
    • Financial Tips
    • Loans
    • Personal
    • Credit
    • Score
    • P2P Lending Buzz
  • Help
Peerform | Peer to Peer Lending Blog
Peer to Peer Lending, Personal

Is it Worth It to Embark on That Home Improvement Project?

By Peerform · On December 8, 2014


You love your home, but it is not working so well for you these days. Moving to a new home is way out of your budget, better to modify what you have. But, will you reap the rewards later when you sell it or are you just throwing money down the drain? And, more importantly, if you need to take out a home improvement loan will you reap enough at resale so that you can repay the loan?

What do the experts say?

Housing industry experts agree that home improvement projects tend to do little more than increase personal satisfaction with your home. A 2014 study published in Remodeling Magazine examined the cost of the 35 most popular home improvement projects to see what percentage of the expenses were recouped when they sold the home. The study found that while some projects do increase the value of the home at resale, the majority do not. If you add a component to your home that every other house in the neighborhood already has, then it is worth it to do the project, even if you need a personal loan to cover the costs. For instance, all the homes in the neighborhood have a backyard deck, yours does not, it is worth it to invest in adding a deck. Home improvements that bring your home more in line with what the majority of home buyers need, i.e. two bathrooms is worth the investment.

5317820857_d1f6a5b8a9_z

Image Source (CC BY 2.0) by Justin Baeder via flickr

Home improvement projects that increase the value of your home

According to an article published in US News & World Report in the summer of 2013, there are some home improvement projects that are worth the investment. If you need a home improvement loan, you should focus on these: kitchen upgrades, remodeling and expanding the bathroom, outdoor landscaping, and new roof and windows. The main point to remember is that your home improvement project should be done expertly, but not necessarily luxuriously. Cosmetic improvements to the interior spaces, such as painting, filling in cracks, replacing broken tiles, wood frames, etc., are worth the investment and will make your property much more attractive to buyers. When a potential buyer sees that there is nothing critical to be done after purchase they will be more likely to agree to your asking price, returning to you the funds you invested in the home improvement projects.

How much is it going to cost?

Many elements influence the cost of home improvement, such as the area of the country and how extensive or luxurious the project is. However there are some national averages available. These should be used a ballpark amount to give you an idea of how much you may need to borrow from a home improvement loan. According to home renovation experts, an upgrade of your bathroom is going to cost you between $9,000-14,000. To add a bathroom will be between $8,000-14,000. Kitchen remodels are the most expensive and will cost you minimum $12,000. If you want to enclose your porch to give you an extra room, you can look at spending between $6,500 to 16,000.

Bottom line

Be modest with how much you spend to improve your home. Do not expect a great return on the investment except from those improvement projects that predictably increase the value of your home, resulting in a better sales price.

What do you think?

comments

Peerform

You Might Also Like

  • Activities for Labor Day Weekend General News & Items of Interest

    The 5 Most Popular Activities for Labor Day Weekend

  • Money Misconceptions Peer to Peer Lending

    3 Money Misconceptions That May Affect Your Life

  • peer to peer lending Peer to Peer Lending

    Peer to Peer Lending: A Look Back on 2019

Sign Up for the Latest News

Join the Peerform community and stay abreast of career tips, workplace trends, fintech, money advice and more

@peerform on Twitter

  • Tweet Avatar
    In The Words Of A Retiree: Planning Makes For A Happy Retirement https://t.co/dj2hnCL2ct https://t.co/dS8ZDP0IB2

    10 months ago
  • Tweet Avatar
    Affirm Consumer Spend Report Reveals Americans’ Top Concern this Holiday Season is Staying on Budget… https://t.co/ZNaqHSbSWE

    10 months ago
  • Tweet Avatar
    The 15 Best Meal Delivery Kits for Easy, Healthy Weeknight Dinners https://t.co/VXEs3FgXPp https://t.co/y2mJWNSRVA

    10 months ago

Find us on Facebook

RSS Peerform Online Lending

  • 6 Things Teens Should Do with Their Summer Job Earnings September 1, 2021
    The raging Covid-19 pandemic has opened more job opportunities for teenagers as the older generation takes a break from work to reduce the chances of contracting coronavirus. Money comes with responsibilities, and without proper guidance, the teens may blow the cash away. Keep reading to get ways that can help your teenager to spend money […]
  • The 5 Most Popular Activities for Labor Day Weekend August 25, 2021
    Sometimes a long weekend appears on the calendar, and you realize you haven’t made plans. Suddenly, you’re at risk of letting a holiday slip by without doing something to mark the occasion. Labor Day is a uniquely special long weekend since it’s the last holiday of the summer, and you shouldn’t let it go to […]
  • 6 Tips to Save Money on Back-to-School Essentials August 18, 2021
    It’s hard not to break the bank when you’re shopping for back-to-school supplies. There are things that you have to purchase and things that you add to cart because, well, stationers are often great at branding. While it’s good to feel excited about this shopping trip, here are some tips to save money on back-to-school […]
  • 3 Best Books to Read About Money August 11, 2021
    Books are one of the richest sources of knowledge we have as humans. If you lack knowledge in a specific area, you best believe that there is a section in the library for you. Personal finance books are rising in popularity lately with more people wanting to know how to manage their money correctly. Personal […]
  • Top 3 Places You Should Consider for Your Retirement August 4, 2021
    After years of working hard and dreaming of retirement, the time has finally come to begin the next chapter of your life. Choosing the right place to retire can have a huge impact on your finances as well as your quality of life. There are several factors to consider when figuring out where to live […]

© 2014 Peerform. All rights reserved.

Privacy Policy