Home Improvement Personal Loan

Recent research by HSBC that the third most popular reason for taking out an unsecured personal loan is home improvements has hit the nail on the head according to B&Q. For most people this is purely to make their living environment more comfortable and to add value to their home in a general sense. However with the house market currently favouring the buyer sellers have to put in extra effort to get a good price for their home. B&Q have stated what many of us already suspect from watching some of the many popular home improvement and house selling television shows; home improvements add significantly to the value of your house and can not only aid a quick sale but get the seller more money.

It’s undoubtedly true that home improvements can add value, but if you don’t have the cash to carry them out is it worth taking out a loan to cover the cost? Are buyers really that concerned with what a house looks like versus other factors such as location, size and potential? It’s been argued that people want to make their own stamp on a new home so why bother redecorating when it might not be to the buyers taste?

According to B&Q it is worth it and redecorating can add £3,000 to the value of your home. Quite a significant increase but nothing compared to what more major improvements can add. One thing that has always been known to attract buyers is a new kitchen or bathroom, Winkworth estate agents estimate that spending £7,000 on a new bathroom can add between £10,000 and £15,000 to the value of your property. Quite an impressive return and all these improvements are likely to enable a quicker sale too.

Although it seems illogical that buyers should be willing to spend more than if they did the work themselves it does make some kind of sense. After all major improvements such as kitchen or bathroom refitting require quite a high level of disruption while work is being carried out. Likewise with decorating, which is also expensive when you’ve just moved into your new home. Moving into a home recently redecorated means you can take your time about putting your mark on the place, though it’s wise to heed the advice of the experts here and stick with something neutral that appeals to all tastes.
However neither personal loans nor carrying out extensive home improvements are activities to be taken lightly. Making sure you get a good deal if you decide to take a personal loan is essential, as is analysing whether it will help add enough value to your home to be worthwhile. Likewise planning any home improvements carefully and ensuring you get a good deal is important, especially if you are funding home improvements through a personal loan. Last but not least, heed the house doctor and keep it simple.

9/5/05