Renovation costs are rising. Could a personal loan help finance your home improvement project?
Are you a homeowner with renovations in mind? Have you been living on a construction site for a few months? You’re not alone.
According to recent data from Houzz, renovation activity and spending have reached a three-year high. Almost half of the owners surveyed said they had renovated their home in 2021 (48%), compared to 44% in 2020.
Manage the cost of a renovation
Did you know that a simple renovation could cost you more now than in previous years? Fortunately, there are plenty of low-rate personal loan options that could help you cover the costs.
Houzz revealed that projected renovation spending increased year over year to $25,000 from $20,000 in 2020.
And keep in mind that the planned budget doesn’t always reflect the actual cost, as homeowners saw a significant 43% increase in median renovation spend, from $21,000 to $30,000 in 2020. Recent buyers exceeded national median spending, reaching $40,000 for renovations and surpassing short- and long-term homeowners ($35,000 and $25,000, respectively).
Help from renovation companies
Unsurprisingly, the surge in renovations has led to a growing demand for home professionals. Homeowners are hiring more help with their renovation projects than the previous year (94% vs. 91%). This undoubtedly drives up the price of construction even further, as there are fewer trades to be made.
As Corelogic predicted in April, this surge in demand coincides with a global supply chain crisis caused by the pandemic, then compounded by instability and inflation caused by the geopolitical situation in Ukraine.
“For anyone looking to build or renovate, or anyone who owns a business involved in the homebuilding industry, this means they are all likely to face significantly higher costs,” said Tim Lawless, CoreLogic Research Director.
No matter the size of your project, renovations can require a bit of financial assistance, and that’s where home improvement personal loans can take some of the pressure off.
Want to start comparing loans for your renovation? Check out some options on offer right now below or head to the best personal loans in Australia this month for Mozo Experts Choice Award winners and Editor’s Picks.
DISCLAIMER: The Comparison Rate combines the lender’s interest rate, fees and charges into one rate to show the true cost of a personal loan. The comparison rates displayed are calculated on the basis of a loan of $30,000 with a term of 5 years or a loan of $10,000 with a term of 3 years as indicated, on the basis of monthly principal and interest repayments, on a secured basis for secured and unsecured loans. basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal fees or prepayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may affect the cost of the loan.
^ See Mozo Experts Choice Personal Loan Awards information
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