Why not let the recession work to your advantage?

It’s no surprise that people are reluctant to make a buying decision due to the perceived uncertainty of the economy.  According to Money Magazine, however, assuming you like what you can’t change about your home—the neighborhood, the school district, the proximity to things that matter to you—and you’re planning in staying for five or more years, tackling that new kitchen or bathroom you’ve been dreaming of is a smart move.  Here’s why.

1. Funding is cheap. Because of the current economic climate home equity loans are charging their floor rates. And with the typical bank account and money fund paying less than 1%, drawing down you savings barely costs you anything in lost income.
2. Materials have come down. Not all costs have tumbled but plywood, drywall and framing lumber have dropped 20-40%.
3. Fixing up costs less than trading up. Even considering that home prices are down, moving is far costlier than remodeling.  For starters, commissions and fees to sell a $400,000 house could run $25,000…You can get a lot of remodeling for that kind of money.  And that doesn’t even include the higher price of the new house, moving costs, and the inevitable painting and window treatments etc. And what if you can’t sell your house right away?  Especially since the kitchen and bathrooms need updating.
4. You can keep that sub-5% mortgage.  If you can remodel your way into staying put long term, you can hold on to that once-in-a-lifetime rate.
5. You get to enjoy the results.  When it comes time to sell your home, chances are you’ll wind up having to do the sorely needed renovations you didn’t take care of earlier.  Not only does that add a great deal of stress to the process of putting a house on the market, but youstill end up spending the money…quite possibly more!

And why not get the benefits for you and your family instead of buying them for the next owners?  Why not do the kitchen and bathrooms soon so you get as much time as possible to enjoy them?

If you want to upgrade the quality of your family’s life, and you can afford it, its money well spent.

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