Talking Home Improvement with Your Spouse
Whether you are a first time homebuyer or at the tail end of a 30-year mortgage, homeowners of all stripes know that improvement expenses are imminent. That is why it’s important to discuss these expenses openly with your spouse, and align on the right plan to address them.
Do not let these expenses overwhelm you or your savings account. With strategic financial planning, and intentional conversations, you and your family can undertake home improvements with confidence and settle into a home you can be proud of.
Starter homes are more than meets the eye
A starter home may require a host of repairs to modernize the interior or exterior. Speak openly with your spouse about expected improvements required before purchasing that first home. Make sure to factor the anticipated expenses beyond the listed home price into your overall house-hunting budget.
As a starting point, anticipate spending 1-3% of the home’s value on home improvements yearly. Following this expectation can help you navigate expenses without surprises. Even with an established budget, be sure to shop wisely for quotes and available tax incentives. First-time homebuyers may be eligible for state tax credits or energy-efficiency rebates, so be sure to research accordingly.
Remember: not every improvement needs to be tackled at once if they do not fit within your current capacity. The key is to budget accordingly, and invest within your means.
Growing families invest for the long-haul
If your current house feels like home for the foreseeable future, consider opportunities for deeper investments. Maybe an addition will accommodate your growing family? Maybe a finished basement will open up your home’s possibilities, and a paved driveway will better suit your family’s vehicles?
Whichever improvements you consider, let a well-planned budget and savings plan guide you.
Work closely with your partner on a sensible home improvement budget with a time horizon of 5-10 years. Building a healthy home improvement plan can minimize stress and strain, adding clarity to your family’s financial future.
Upgrades for aging
Naturally, aging bodies require homes that accommodate us over time. If you and your spouse plan to hang onto your home post-retirement, consider budgeting accordingly for accessibility features like walk-in showers, and smart home technology.
Not all debt is a negative, but be mindful not to damage your retirement savings with additional loans. When possible, look to pay in cash for late-in-life home improvements.
Do not let home improvement needs catch you and your family off guard. Talk with your spouse about the range of improvements, expected and unexpected. From there, work collaboratively on a budget and plan that will strengthen your dream home, or at the very least ward off nightmares.
A Point Breeze HELOC comes in two forms: a standard HELOC or an Interest-Only HELOC. The standard HELOC offers variable interest rates, while an Interest-Only lets you pay interest on only the money borrowed in the first 10 years.
2. Plan for inflation
Inflation can threaten the best budgets, so consider how cost increases may impact your home improvement schedule. A thorough budget assessment and re-arranging of funds can help keep your plans on track when costs rise.
3. Build your emergency fund
A healthy emergency fund is the safest way to undertake home improvement expenses. Work with your partner to grow your pool of emergency money, and be ready to tap into it as needed when major expenses arise.
Do not let these expenses overwhelm you or your savings account. With strategic financial planning, and intentional conversations, you and your family can undertake home improvements with confidence and settle into a home you can be proud of.
Home Improvement Expenses Throughout Life
Each stage of home ownership has its own set of home improvement possibilities to discuss.Starter homes are more than meets the eye
A starter home may require a host of repairs to modernize the interior or exterior. Speak openly with your spouse about expected improvements required before purchasing that first home. Make sure to factor the anticipated expenses beyond the listed home price into your overall house-hunting budget.
As a starting point, anticipate spending 1-3% of the home’s value on home improvements yearly. Following this expectation can help you navigate expenses without surprises. Even with an established budget, be sure to shop wisely for quotes and available tax incentives. First-time homebuyers may be eligible for state tax credits or energy-efficiency rebates, so be sure to research accordingly.
Remember: not every improvement needs to be tackled at once if they do not fit within your current capacity. The key is to budget accordingly, and invest within your means.
Growing families invest for the long-haul
If your current house feels like home for the foreseeable future, consider opportunities for deeper investments. Maybe an addition will accommodate your growing family? Maybe a finished basement will open up your home’s possibilities, and a paved driveway will better suit your family’s vehicles?
Whichever improvements you consider, let a well-planned budget and savings plan guide you.
Work closely with your partner on a sensible home improvement budget with a time horizon of 5-10 years. Building a healthy home improvement plan can minimize stress and strain, adding clarity to your family’s financial future.
Upgrades for aging
Naturally, aging bodies require homes that accommodate us over time. If you and your spouse plan to hang onto your home post-retirement, consider budgeting accordingly for accessibility features like walk-in showers, and smart home technology.
Not all debt is a negative, but be mindful not to damage your retirement savings with additional loans. When possible, look to pay in cash for late-in-life home improvements.
Home Equity Lines of Credit — HELOC
If home improvements are commanding your attention, there are pathways to payment through strategic loans. Chief among these options is home equity lines of credit, or “HELOC.” With a HELOC, homeowners can tap into the value of their home through a financed plan, providing access to the money you need. HELOC plans offer comparatively low rates, and a range of timelines available in accordance with your goals and needs.Do not let home improvement needs catch you and your family off guard. Talk with your spouse about the range of improvements, expected and unexpected. From there, work collaboratively on a budget and plan that will strengthen your dream home, or at the very least ward off nightmares.
Point Breeze Picks
1. Home equity line of creditA Point Breeze HELOC comes in two forms: a standard HELOC or an Interest-Only HELOC. The standard HELOC offers variable interest rates, while an Interest-Only lets you pay interest on only the money borrowed in the first 10 years.
2. Plan for inflation
Inflation can threaten the best budgets, so consider how cost increases may impact your home improvement schedule. A thorough budget assessment and re-arranging of funds can help keep your plans on track when costs rise.
3. Build your emergency fund
A healthy emergency fund is the safest way to undertake home improvement expenses. Work with your partner to grow your pool of emergency money, and be ready to tap into it as needed when major expenses arise.
Point Breeze Credit Union is a full-service financial institution with locations throughout Maryland.