Investing in home improvements is a great way to add value to your home. You can do projects like painting walls, installing new cabinets and countertops, and updating your heating and air conditioning systems. You can even change your walls and install new tiles and wallpaper to give your home a fresh look. Whether you’re planning to sell your home or stay for a few more years, a few simple changes can make a big difference.
Angi reports that spending on home improvement is at its highest level since they started tracking this data seven years ago. Home prices grew by 20% year over year, while materials soared 400% from pre-pandemic levels. That increased people’s focus on improving their homes, according to Mischa Fisher, chief economist at Angi.
If you’re planning on a major renovation project, you may want to consider taking out a home equity loan. This loan is an installment loan that you pay back over five to 30 years. It’s essentially a second mortgage and can help cover the costs of some costly projects. However, it’s important to note that you can only borrow up to 85% of the equity in your home. Before you apply for a home equity loan, you should consider whether the renovations you want to make are worth it.
You should also make a detailed list of the work you need done. This helps you negotiate with contractors and lock in firm prices. It’s also important to make sure the contractor is licensed and insured. Also, you should find out if there are any building codes or permits that need to be obtained. You can do this by checking with the local building codes office. It’s also a good idea to compare the prices of several contractors before making a decision.