Home Improvements: Financially Wise or Not?

Home improvements tend to be something that we do for our own benefit. If we identify an aspect of our homes that we’d like to change, or that we think could be improved to better tick our boxes, we’ll add it to our to-do list or home renovation wish list.

This isn’t all too surprising. Our properties tend to be the places where we spend the most time outside of work. They’re our safe havens and we’re going to want to make sure that they’re as best suited to us and our needs as conceivably possible! But when it comes to home improvements, you need to also be financially savvy.

Renovations don’t tend to come cheap, so you need to make sure that you’re spending your money in the right areas. Here’s a deeper look into the subject to help you make the best decisions possible!

Improve vs. Move

If your home has a seemingly endless home renovations list, you may want to consider whether it could be more financially wise to sell up and find a property that already has all of these features that you want, or that has already had all of this work carried out on it.

A huge renovations list is likely to be extremely costly and people tend to only do this if they have a property in an exceptional and highly desirable area that cannot be found elsewhere. On the other hand, if you only have a few changes you’d like to make to your home, renovating the space you already have could prove to be much more cost-effective than picking up your whole life and moving it elsewhere.

After all, moving home entails estate agent fees, commission fees, potential loss on your current property, and other related costs, such as cleaning and removal costs. A good way to know whether renovating or moving is best for you is to have an individual evaluation carried out and to get some quotes from architects and construction workers. You can then see the most financially savvy option on paper.

Keeping in Line With the Neighbours

Even if you’re pretty happy with your home in its current state, you may find that it’s a financially wise move to keep up with neighbors’ improvements. This isn’t a simple case of keeping up with the Joneses for the sake of appearances. It’s more of a logical move.

You don’t want to find that your property has significantly fewer desirable features to others in the area if you ever decide to sell up and move down the line. You need your property to be equal to others in the area for it to maintain its value as time passes by.

Home improvements can be costly. But at the end of the day, they could be significantly cheaper than the alternative options you have available. The above points should help you to make the best decision in regards to your personal finances when it comes to home renovations in particular!

Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.