With home values surging, money is relatively cheap, and inventory is tight, needless to say, the real estate market is a little crazy right now. However, that is all great news for owners who have been considering remodeling their home. Plus, the longer you wait, the more expensive renovating or remodeling gets. If you have been on the fence, this may be the year to start!
You Likely Have More Money
Consumer confidence is high, unemployment is low, and incomes are growing which means you likely have more money in your pockets. Also, if you are a homeowner, chances are good that your home equity has increased along with skyrocketing home prices over the past few years. So, when it comes to spending cash on all those “get-to-it-later” home projects, you’re probably in good standing. Especially, since the remodeling market is expected to grow 7% this year.
Interest Rates for Building Loans are Low
Interest rates for home equity lines of credit are historically low. Even though interests paid on HELOCs is no longer deductible under the new tax reform legislation, experts say the building loans remain a good deal. So, you should take advantage of the low rates before it starts to increase.
Cheaper than Buying a New Home
If you live in a high-cost metro area and already have a foothold in the real estate market, remodeling your existing place could be cheaper than buying a new one. In fact, it could be a lot cheaper unless you were planning on downsizing. There are a lot of factors to consider, however: How much equity you have in your place, what your current mortgage rate is, and whether major renovations are even feasible. But experts agree that, in many cases, the current seller’s market makes renovating a more palatable option than buying.
Remodeling will be a major trend in 2018 because we have seen prices grow so much that a lot of potential buyers are being priced out of their own markets. That is where you see a turn toward giving up on trading up and buying again and considering other options like renovating.