Making Your Home Beautiful on the Cheap
A yearly home owner survey conducted by Harris Poll for LightStream, SunTrust Financial institution’s on the internet borrowing division, discovered that 57 percent of home owners plan to invest money on house renovation this year.
As Todd Nelson, LightStream company development officer, told MarketWatch today:
Consumers are significantly putting cash back right into their houses. … This is good for the economic situation and also the home-improvement sector overall.
But exactly what’s good information for financial institutions isn’t necessarily excellent information for consumers.
In the LightStream questionnaire, the percent of home owners who state intending renovation tasks for this year is up simply 1 percent from in 2012– but the portion who prepare to pay for their residence renovations with loans and credit lines is up disproportionately:
- 59 percent of respondents plan to pay for home-improvement projects with savings. (That is down from 72 percent last year.)
- 30 percent plan to pay with a credit card (up from 21 percent last year).
- 9 percent plan to pay with a home equity line of credit, or HELOC. (Last year’s numbers were not available.)
- 7 percent plan to pay with a loan (up from 6 percent last year).
That means more homeowners will also be paying interest on top of the outright costs of their projects.
The good news is The United State house improvement market has actually been scraping its way back up considering that the Great Recession put it in such a hole.
This year could possibly “effortlessly” see record-level spending, beating out the $324 billion spending record reached in 2007, based on a current guide from the Joint Center for Housing Studies at Harvard College.
