10 Reasons to Put Off Home Renovations

Whether you're looking to renovate a property you own or one you hold as an investment, there are plenty of good reasons to make improvements to your living space. But that doesn't mean now's the best time to go that route. Here are a few good reasons to delay home renovations.

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It's one thing to renovate for the express purpose of boosting a home's resale value and another thing to do so for your own enjoyment. If you're in the latter scenario, you'll want to make sure you'll really get to enjoy your home improvements. But if you're toying with moving, you may want to hold on to that project until your plans are firmer.

ALSO READ: Putting Off a Home Renovation? Here Are 4 Tips for Getting Started

While renovating could mean fetching a higher price for your home once you decide to list it, you don't want to go overboard on improvements. If you do, you might risk a scenario where you don't get back much of your investment. So, if you're thinking of major, high-end renovations, you may want to talk to a local real estate agent first.

3 Signs You're Going Overboard on Home Improvements

It's important that the person you hire someone for your home improvements comes with a solid track record. If you haven't yet found a contractor with great references, you may want to wait until you do. That could spell the difference between quality and subpar work.

These days, labor costs more across the board due to a widespread shortage of available workers across numerous fields. Because of this, you might pay more for a contractor in the near term -- so it could pay to put your project on hold until labor costs drop.

ALSO READ: Employers Are Offering This Key Incentive to Attract Workers During the Labor Shortage

Right now, the cost of common building materials is high, and that's apt to make your renovation cost more. If you hold off, you might spend a lot less on materials alone.

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There are different options available for financing home improvements. But if you haven't yet done your research, it pays to hold on to those plans until you've had an opportunity to explore different loans.

You may decide that a home equity loan is your best bet. Or you may find a cash-out refinance is a better option. Either way, you shouldn't renovate until you've explored your choices thoroughly.

ALSO READ: What Is a Cash-Out Refinance and How Does It Work?

If you're a real estate investor, you may have your eyes on another income property. And if you're a homeowner, you may be contemplating the purchase of a second home. If you don't know whether there's another big purchase in your future, you should hold off on home renovations until you've decided for sure.

Refinance rates are sitting at competitive levels these days, but they're higher than they were in 2021. So, you may want to refinance sooner rather than later. If that's the case, you probably don't want to take out a renovation loan before applying for a new mortgage. Adding a debt payment to your personal mix might compromise your ability to get approved for refinancing.

ALSO READ: Should You Refinance Your Mortgage in 2022?

Whether it's debt you incurred due to home repairs, the holidays, or income loss from a bout of unemployment, if you're already trying to dig out of debt, you may not want to take on more of it by financing a home improvement project. Instead, it could pay to shore up your finances a bit and then take on another expense.

Nice as it may be to spend money on renovations, if you have home repairs you've been putting off, those should really top your list of priorities. That especially holds true if you're limited with funds and can only tackle one project at a time.

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Eager as you may be to renovate, in some cases, holding off could be a better move. The upside of waiting, though, is having more time to research your options and figure out the best way to tackle the improvements you have in mind.

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