Why Building Additions During COVID-19 is the Best Decision Homeowners in Chicago Can Make

COVID-19 has changed how homeowners are viewing the future. The CNBC reported a 58% increase in the annual number of home remodeling projects during June 2020. It was also reported that families are three times more likely to invest in building swimming pools and spas compared to previous years. Several factors have contributed to this shift in viewpoints, with social distancing being one of them. 

The Focus is on More Spacious Kitchens and Living Areas

The pandemic caused everyone's lives to change. Adults started working from home, and kids and students turned to e-learning. These changes caused families to need separate spaces for playing, studying, working and entertaining at home. COVID-19 also made many families turn to home-cooked meals instead of take-out, causing there to be a surge in kitchen remodeling projects. Installing fences and advanced security systems became a priority as families spent more time at home. With all that being said, let's take a look at why working on a home addition project during the pandemic could be a great decision for you. 

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 Get renovations that can provide a much needed facelift to outdated structures and designs, and create curb appeal to your home. Some other projects could be extending the living spaces to add a sunroom where the whole family can spend time, or renewing the basement to include a den or a home office where you can work comfortably. A private office can be very beneficial to those working from home as it can create a space away from all the noise, and provide a calm environment to focus on your work. 

Adding to your home's floor space is likely to give you a great return on the investment. Let's say 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.

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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 the money for home addition projects, 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 Coronovirus combined with lockdowns and the new stay-at-home lifestyle, has actually ended up putting money in the pockets of the average homeowner. All the expensive vacations, trips, and days out have been canceled, and finding entertainment at home replaced them. Shopping has also taken a backseat due to store closings and restrictions on social gatherings.

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 plan to take up remodeling now that they have the time and the resources.  

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Work from Home is the New Normal

Many companies are now realizing the savings they have from having their employees 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 you see yourself working from home, changing the layout of your home with additions to keep up with the evolving needs of your household makes perfect sense.

Approach the Project with Caution

Although starting a home renovation is fun and exciting, it is important to get estimates of the costs and plan the project in detail. It’s not as easy as it seems, before starting your project you need to make sure you have all the necessary building permits and check all your neighborhood regulations. The best option would be to work with the experts in remodeling- Augustyn Builders. Let us help you get started with some fantastic ideas for your next renovation. Contact us here: https://www.builder-chicago.com/contact/