The COVID-19 has changed how homeowners are viewing the future. Statistics gathered by the CNBC report a 58% increase in the annual number of home remodeling projects in June 2020. Interestingly, families are three times more likely to invest in building swimming pools and spas within their homes that they have been in the past few years. Several factors have contributed to this shift in viewpoints, and maintaining social distancing is only one of them.
The Focus is on More Spacious Kitchens and Living Areas
Not just adults, but kids and students also need spaces for studying, playing, and entertainment at home. And, with the focus now on healthy, home-cooked meals, more families are looking for kitchen remodeling projects. Installing fences and advanced security systems is also high on the list of priorities with more people spending time at home than at work and school. Let’s take a look at some of the key reasons why building home additions during the COVID-19 is one of the best decisions you could take.
Home Addition Projects Get You an Attractive Return on Investment (ROI)
Now that interest rates are dropping and home equity loans are more economical, this would be a great time to invest in remodeling or upgrading your home. Get renovations that can lend a much-needed facelift to outdated structures and designs, and lend curb appeal to the house. You could also extend the living spaces to add, say, a sun room where the whole family can spend time or refurbish the basement to include a den or a home office where you can work comfortably. A private office would be ideal for conducting Zoom meetings and conferences without the sounds of the kids playing or the garbage disposal running.
Adding to the floor space is likely to give you great returns on investment. Say, for instance, you add an average room of around 20 feet x 20 feet at the cost of between $32,000 and $80,000. You can expect the value of the house to rise by 50% or more. The kind of additions you choose can also influence the final property value. Sunrooms add around 49% to the value while an extra master suite can bump up the house price by 63%. An extra bathroom can get you up to a 53% higher return on the house.
Errors like switching wires and hot and cold plumbing can be potentially hazardous. Above all, keep in mind that you may have to invest more than just money and sweat equity. Lack of expertise typically ends up taking a lot of time. If you can only work over the weekends and holidays, completing the DIY renovation project could extend longer than you expected.
Getting Financing for the Project is Easily Done
ATTOM Data Solutions reports that in the second quarter of 2020, around 15 million residential properties carried mortgages that were less than 50% of the value of the house. Despite the COVID-19 pandemic, rising real estate rates in equity-rich locations are making more funds available to the average homeowner. If you’re concerned about raising the money for home additions, you can take advantage of the accumulated equity and take out a home equity loan. As long as you’re using the money to build up the home, that’s one of the best investment options.
Refinancing your home is also an attractive proposition. Check out these statistics on RedFin and you’ll see why. If you can get lower interest rates than the rates you’re paying on the current mortgage, you could consider getting a cheaper mortgage. And, while you’re at it, include the cost of the home addition for a higher return on investment down the line. A better quality of life is an added bonus.
You’re Probably Making Substantial Savings During the Coronavirus Pandemic
The Coronavirus, lockdowns, and stay-at-home lifestyle has actually put more money in the pockets of the average homeowner. Expensive vacations have been canceled and people are learning to cook and eat their favorite dishes at home. Shopping has also taken a backseat not just because stores are closed, but also because of the restrictions on social gatherings and fine dining.
The substantial savings that people are making is providing incentives to add more value to their homes. Close to 75% of American homeowners talk about how they’ve invested in some kind of home improvement. Or, intend to take up remodeling now that they have the time and resources.
Work from Home is the New Normal
Many large and small companies are now realizing the economies of having a larger part of their workforce work from home. Until 2019, being allowed to work remotely was considered a perk, but now - it’s the new normal. In the coming years, more professionals are likely to opt for the flexibility of choosing locations and work hours that are more suited to their personal commitments and time with family. If this is you, changing the layout of the house with additions to keep up with the evolving needs of your household makes perfect sense.
Approach the Project with Caution
Although starting a home remodeling project is fun and exciting, it is advisable to get estimates of the costs and plan the project in detail. You might also need to get the necessary building permits and check for neighborhood regulations. A smarter option would be to work with the experts in remodeling projects - Augustyn Contractors. How about contacting us here: https://www.builder-chicago.com/contact/ . Let’s help you get started with some fantastic ideas.