Owning your own home is a part of the American dream, and while it would be nice if your home was perfect, this probably isn’t the case. Most homes need some type of home improvement project completed from time to time, but paying for home improvements can be costly. Many large jobs can cost thousands of dollars or more, and major renovations can cost tens of thousands.
If you’re planning to purchase a home and are trying to figure out how much you should save up for future home improvements, below are some things to think about:
The Age of Your Home
The age of your home can play a big role in how much you will need to save for home improvements. Older homes tend to require home repairs and maintenance more often. If you’re moving into a home that hasn’t been renovated in decades, you’re probably going to be looking at a pricey renovation.
Your Budget
How much you need to save will also come down to your budget. For some homeowners, a few grand for home improvement projects is only a fraction of their monthly income. For others, a few hundred extra dollars could take months to save up and set aside.
If you’re having a hard time pinning down your home improvement budget, you might consider looking into home improvement credit cards. These are credit cards often issued by stores like Home Depot and Lowe’s to help homeowners get the things they need now and pay the balance over time. Be mindful of the interest rate on home improvement credit cards as some of them have rates that are higher than what your bank may charge for a home improvement loan.
Prices in Your Area
Something else to consider is the cost of contracting services in your area. Some regions experience higher costs than others, and the cost of materials can also vary based on your location. Seasonal availability could also influence the cost of home improvement services since most contractors are much busier during the warmer months. This could mean you will pay more for a home improvement project during the summer compared to the winter.
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