The Link between Home Improvement Loans and Property Values
In recent blog posts, we have cited statistics showing that home improvements are now the 0primary reason people seek out secured loans. The desire to improve one's property has surpassed the need to consolidate debt, if only by a little. Digging through the statistics reveals something else you might find interesting: there is a link between home improvement loans and property values. In other words, areas where property values are higher tend to see a higher volume of home improvement loans.
Data recently cited by Property Reporter demonstrates that nearly one-third of property owners who apply for home improvement loans are making improvements in the hope of increasing the value of their homes. This shouldn't be surprising. Property experts have long encouraged people to take advantage of rising property values by making improvements that will increase future sale prices. The interesting thing is comparing home improvements with property values by region.
Higher Values Equals More Improvement
Research data clearly shows that people are more willing to make home improvements if they live in areas with higher property use. For example, the Greater London area is one of the hottest in terms of property values. One borough in particular, Barking and Dagenham, saw the highest increase in home improvement loan applications in 2016 â?? more than 76% higher than the year before. Kensington and Chelsea is also hot right now.
It turns out that these boroughs are consistently near the top of the list of average property values in Greater London. Property owners in these regions appear more willing to make home improvements in order to keep their homes up to par with the neighbours, thereby ensuring that their properties have comparable values. In short, you don't want to be the one homeowner on the street whose property sells for 25% less because you never made the improvements that prospective buyers are looking for.
For the record, the other end of the scale is observed in the Midlands and the south-west of England. Melton is one example. It registered a 13.25% drop in home improvement planning applications in 2016, which translated into a decrease in home improvement loans.
Planning Improvements for Your Home
You are probably making a good decision if you choose to apply for a home improvement loan with the goal of adding value to your property. But be aware that not every home improvement will help you achieve your goal. There are wise ways to spend your money as well as other ways that are not so wise. Be sure the home improvements you want to make will truly add value to your property before planning begins.
Property experts have said for years that updated kitchens and bathrooms add the most value to a home. That makes sense, at least where kitchens are concerned. The kitchen is the one room in the house that tends to get the most use by both families and gatherings of friends. Having an updated kitchen that is both functional and aesthetically pleasing can mean the difference between a strong offer and a weak one.
If you're not sure what kind of home improvements to make, you can always employ the services of an estate agent willing to help you out. Even an interior designer or a home staging professional could give you a fairly quick assessment of what needs to be done in your home. Then you can go out and begin researching home improvement loans with the confidence that you will be making improvements that will add value to your property.
Property Reporter â?? http://www.propertyreporter.co.uk/property/which-areas-are-spending-the-most-on-home-improvements.html
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