The market for home improvement products and services is getting more competitive as more vendors enter the fray. Consumers can get cash for home improvements from banks, credit cards, and online lenders. However, before taking out a loan, it’s important to understand the options available.
Many homeowners are considering a major project that will improve their homes. Some projects, like a new front door, can cost thousands of dollars, while others are simple updates that cost hundreds. Whether you’re upgrading or improving, make sure you have a budget in mind to prevent your renovations from becoming out of control.
Investing in a quality home upgrade is a wise move. Not only will it increase the value of your property, but it may also give you a better lifestyle. For example, you can add an additional room, increase storage, or update an interior or exterior feature. These updates can help you live more comfortably, reduce your energy consumption, and even be safer.
Axiom, a Minneapolis-based marketing firm, surveyed consumers about their home improvement plans for the next year. Almost half of respondents (48%) plan to do at least one project this year. Of those surveyed, most plan to do some work themselves. Other respondents are planning to hire a professional for a full or partial project.
The most popular categories for home improvement include exterior and backyard work. More than one in four respondents plan to install a fence, and more than two in five plan to build a deck. Homeowners are also looking to improve their kitchen and bathrooms. If you’re renovating a bathroom, make sure you keep the design and features in line with your home’s overall style.
When it comes to home improvement, a 0% APR credit card is a good way to finance a new appliance or paint job. However, you may have to pay back the balance before the introductory period ends.
Another good option is a home equity line of credit. Using a home equity line of credit can provide you with a lump sum of cash to do your home improvement project. It can also help you consolidate debt. Depending on the lender, you can take out as much as 85% of your home’s equity.
To avoid overextending yourself, remember that home improvement loans are more difficult to obtain than other types of loans. But if you have excellent credit and a solid idea of the money you need, you’re likely to be approved. You may also be able to get a personal loan that does not require collateral, although you will be subject to higher interest rates.
The Harvard Joint Center for Housing Studies predicts that the market for home remodeling will peak this year and then begin to decelerate over the next few years. This is great news for professionals. Because most of the major players in the marketplace are reshaping their business models to become more omni-retailers, they have more incentive to compete on price and differentiation.