How to Make the Best of Home Renovations in a Recession
Written By: Julian Lane
For homeowners wondering where to invest during the economic downturn, the answer is simple: your property. Starting a home renovation can feel daunting, but adding to your home’s value and making your space more enjoyable to live (and possibly work) in is priceless. Take note of these tips from Top Pick Guy, and start your renovation off right.
Spend Wisely
Though renovations are a worthwhile project, inflation can impact the cost of materials and labor. Just how much do rising gas prices affect home renovation budgets?
CNBC confirms that housing construction costs are up 19 percent, causing many homeowners to delay improvement projects. The availability (and travel distance) of contractors may also present challenges.
But as CNBC points out, delaying necessary repairs can be risky, and holding off on improvements means your home’s value may remain stagnant. To manage budget issues, look for practical ways to pay for home repairs. Homeowners looking to lower home renovation costs should search prices and rates and source multiple quotes before beginning a project.
Clear the Way
Renovating a home can get messy, and workers need a lot of space to maneuver. To protect your belongings, consider temporarily moving furniture and other items out of the house.
Stowing belongings off-site helps avoid damage — and construction dust or paint mishaps. Renting a storage unit doesn’t have to break your budget, either.
Storage in the Los Angeles metro area is affordable, especially if you need more than a month’s worth of services, thanks to new customer deals. Deals in LA start as low as $86 for a 5×5 unit.
Apart from protecting belongings, because of the potential for toxins (and mess), the EPA suggests multiple measures for improving ventilation and reducing exposure to pollutants. Residents might even want to leave the area altogether during construction.
Plan Ahead
Because renovations are a big undertaking, it’s crucial to plan for the future. Your motivation for the updates might be to increase your home’s value, or it might be to make your forever home more comfortable in the future. Either way, longevity in design is a win.
Renovations like room additions, kitchen remodels, and updated lighting and HVAC offer an impressive return on investment. But whether you’re adding another bedroom, overhauling a home office, or replacing the kitchen, think ahead.
For a home office, that might include designing around a guest bed so your workspace can do double duty when family visits. A bathroom reno featuring accessible design adds value and safety if you continue owning your home into retirement.
Is It Better to Sell?
Given the magnitude of most home improvement projects, you might consider selling outright. The question is, how much do rising gas prices affect home buying and selling?
Economic factors like material costs and labor shortages will also impact your ability to sell your home — and buy a new one if needed.
Realtor.com confirms that pain at the pump (not to mention inflation elsewhere) can impact home prices. Opinions are divided, but many experts think property values will continue to rise, which could be good news if you’re selling.
However, you could also become a victim as a buyer, as the mortgage rate spikes and high demand for homes create a competitive market.
Do your research before listing (or shopping), and choose wisely!
Protect Your Investment
There are many ways to save while renovating, but what about protecting that investment when the dust settles? Depending on the renovation plan, you might consider a home warranty when the work is complete.
A home warranty is a renewable contract that serves as insurance for home systems and appliances. As Consumer Affairs points out, most plans cost between $36 and $68 per month; service fees vary based on repair type and contract terms.
A warranty might offer peace of mind if you’ve spent a lot on renovations, and repairs will likely be cheaper under a warranty.
Deciding to invest in your property during an economic downturn can feel like a gamble. Starting with a plan for protecting your belongings off-site and, later, protecting your renovation investment can make all the difference for your finances. Over time, the improvements you’ve made can increase the property’s value — a payoff that’s worth the time and effort.
