Why We Don’t Always Move Forward with Home Improvements

Everyone enjoys feeling proud of their home and protecting their investment. We take pleasure in having a green lawn, well manicured landscaping, and a fresh coat of paint. Is there any greater feeling than inviting your family and friends to your home and receiving a compliment like “You have done such a nice job with this house.” or “Your new windows look amazing.” With all these positive feelings, why don&;t we always move forward with the home improvements we would like?

Doing Nothing is Easier

Well yes, doing nothing is always easier, but doing nothing will not solve the problem or increase the value of your home. But we are Busy! Many of us do not want to deal with contacting multiple remodeling companies, getting quotes, selecting a contractor, and dealing with the mess of installation. Often, these tasks can be time consuming and sometimes even a chore. You can make your life easier by contacting 1-2 reputable home improvement companies. By selecting a larger, reputable company you will ensure a streamlined process that will minimize your headaches.

Financing is Tough to Come by These Days

The post-financial meltdown era has left our credit markets in turmoil. Today, the government backs over 90% of American mortgages, hundreds of banks have failed, and credit card offers are harder to come by. At first blush, this environment does not bode well if you would like to borrow money to improve your home. Again, larger home improvement companies can help you with this problem. Large home improvement companies (like Moonworks) have direct access to the credit markets. We can help you receive financing directly with credit card companies (sometimes with no interest, no payments for 12 months) and even a Home Equity Line of Credit (HELOC).

I Have Other Bills!

Now more than ever, Americans are saddled with scores of bills. It is hard to imagine that just 50 years ago (the Mad Men era) an American family could live off a single income, own one car, and graduate from a good college without any debt. As we are all well aware, we live in a different world today. Many of us are juggling weekly and monthly bills, working several jobs, and long hours. Many of us make just enough to provide for a modest income, a nice home for our family, and the occasional one week vacation. This doesn&;t leave a whole lot in the rainy day jar for home improvements!

Well if you look at home improvements as another bill or an expense, you would be right. However, home improvements are not an expense, they are an investment with a cost. This is a confusing statement/concept so let me try to break it down with an analogy below.

Expense: An expense occurs when you exchange money for a good or service and don&;t expect to ever see that money again. A great example is your oil bill! When you pay for an oil delivery you never expect to see that money again. You mailed your check to the oil company and fully expect them to cash the check and put the cash in their pocket.

Home Improvement InvestmentCost: When an item has a cost, it is vastly different than an expense. When you invest in the stock market or your 401k, there is a cost for you to own that investment. Yes, you no longer have access to that money but you haven&;t lost it either – it is merely in another place, potentially (and hopefully) increasing in value. You also assume one day you will have access to that money again (when you sell the investment) and hopefully receive a profit. Many home improvements can be viewed in the same way. For example, when you invest in new windows there is a cost. However, you receive a monthly return in energy savings for the life of the windows (like a stock dividend) and when you sell your home one day, you can assume your home is now worth more with the new windows installed (like selling your stock).

If you are interested in investing in your home (and receiving dividends), be sure to Contact Moonworks for a Free Estimate Today!

Photo Credit: chiquitty

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