Home improvement refers to a variety of work done to improve a house or apartment. It can be a minor project like repainting a room or updating light fixtures or a major renovation such as building an addition or redoing the kitchen. Home improvements can increase the resale value of a property or simply make it more comfortable to live in. However, some projects have a greater return on investment than others, so it is important to research before starting a project.
Taking on a new home improvement project can be costly. Almost 20 percent of homeowners who invested in home improvement over the past two years said they had to cut back on discretionary spending or sell items to pay for the projects. Another 12 percent had to tap into or exhaust their emergency savings. And about a quarter of those 55 and older said they borrowed money for renovations.
The good news is that the majority of planned upgrades aren’t aimed at making their homes more attractive to buyers. Instead, most homeowners plan to renovate to make their homes more comfortable or simply to enjoy living in them more, according to the 2022 LightStream Home Improvement Survey.
Before you start any major work, it’s a good idea to talk to a real estate professional to see what improvements will add the most value to your property. Then, it’s wise to calculate the cost and compare that with your budget to ensure you can afford to complete the project without going into debt.