Even though home values have dropped, it still makes a great deal of sense to consider remodelling your home.
Not to long ago it was possible to undertake major home renovations and recoup your remodelling costs. According to industry experts the average costs that were recouped as of 2005 was estimated at 87%. Five years later this estimate has fallen to approximately 60%.
Despite this, there are still plenty of reasons why it makes sense to go ahead with the remodelling project that you have been thinking about.
Individuals who have a considerable level of financial muscle are positioned to take advantage of the current state of the economy as far as home renovations are concerned.
The current interest rates are some of the lowest in a very long time.
This means that if you have a HELOC, (Home Equity Line of Credit) your rate can be as low as 3% - 5%.
It also costs very little in lost income to draw from your savings account.
2Contractors Are Cheaper
Despite the fact that the construction industry enjoyed a resuscitation of sorts in 2010, things are not yet back to optimal levels as was in the days of the real estate boom. Nowadays virtually all contractors are seriously bidding for jobs and to secure contracts they are quoting prices that on average are 10-20% lower than when the market was at its peak. Getting professional services for these friendlier rates has certainly made for cheaper remodelling costs.
3Building Material Cost Has Declined
Alongside the previously mentioned contractors’ rates, the cost of materials has taken a nosedive. Five or six years ago it was really expensive to purchase materials like framing lumber, drywall and plywood but these materials are now quite affordable having gone down by 35%, 29% and 23% respectively.
The situation is not the same across the board though. Indeed there are materials whose prices have fallen by just a slight margin. Asphalt roofing is only 7% cheaper compared to the price from two years ago while the price of insulation has only fallen by a mere 2% in the last four years. With construction supplies being this cost-friendly more homeowners can manage the costs of remodelling their houses.
4Save on Energy Costs
Undertaking renovations in your home, especially the kitchen or bathroom can really be the initiative you need to start living a green lifestyle and begin significant savings on utility expenses. You don’t have to tear down everything to use this approach – you can begin by installing new insulation, window panes, and appliances like solar panels.
While the savings you make won’t be significant enough to offset your remodeling costs, it will help over time. You can also take comfort in the f...