One of the aspects of every home improvement project that should be taken into consideration before proceeding with it is its potential for return on investment (ROI). Essentially, this number is what percentage of the cost of the project that you can expect to recoup in terms of the dollar amount of value this project adds to your home. For example, if you were to remodel your kitchen for $20,000, and the amount of value it added to your home was $15,000, you would have a 75% return on investment.
This number is also known as the cost to value ratio, and for the past decade Remodeling Magazine has been monitoring the cost to value ratio for 35 home improvement projects, from installation of a backup power generator to bathroom remodeling to garage door replacements. In tracking the ratios for all of these projects, the magazine has also tracked the average cost of the projects and recouped value for nine different regions of the country as well as numerous cities within those regions (101 altogether), so you can get an idea of how much a home improvement project would cost in your area and how much value you could expect to add to your home.
There’s a lot of encouraging data from this year’s figures, which have been released in the magazine’s 2014 Cost Vs. Value Report (link), but perhaps the most encouraging is the national average cost to value ratio. The ratio, which had been in decline since the mid-2000’s, has now risen for two consecutive years, and currently stands at 66.1%, “a jump of 5.5 points over last year and the largest increase since 2005, when the ratio jumped 6.1 points to reach its high of 86.7%.” In addition, “A modest 2.2% increase in average national construction costs was more than offset by an 11.5% improvement in average national resale value.” Read more about national, regional, and local trends in the home improvement market on Remodeling’s website.
Your Project Loan has over 55 years of experience helping homeowners get the loans they need to make their remodeling dreams a reality. Is your kitchen aging faster than you’d like it to? Is the bathroom in need of a facelift? We’ve got you covered. No matter what kind of remodeling you want to do, we can get you the loan to finance it. With new low 4.99% APR financing available in all 50 states and up to $100,000 with no equity required, now is the perfect time to go to our website and fill out our 60 second loan application.
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As the old adage goes, time is money, and for an investment of just 60 seconds you could be looking at a great loan for your home remodeling project. In less than the time it took you to read this blog, you could have been on your way to a loan today. So don’t delay, head over to our application and get started! And be sure to follow Your Project Loan on Facebook, Twitter, Google + and LinkedIn.