By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC
Due to record-shattering values in today’s competitive housing market, homeowners are racking up record amounts of home equity and are spending that cash on making their homes even more valuable.
According to a survey released last year by TD Bank, renovation spending is soaring, and 80 percent of borrowers are taking out home equity lines of credit say they would consider using the money to renovate.
“We’re not only seeing more requests for proposals but more committed projects from homeowners,” said Steve Cunningham, a remodeler from Williamsburg, Virginia, in a report from the National Association of Home Builders. “In addition to regular updates and repairs, there’s been an uptick in more ambitious large remodel requests.”
Remodeling spending topped $152 billion in 2017, and renovations for owner-occupied single-family homes will increase 4.9 percent in 2018 more than in 2017, according to the NAHB, but does not include remodeling done by investors looking to flip or rent properties, both of which are increasing as well.
Homeowners are also using home equity cash for education expenses and to pay down other debt in order to lower monthly payments, but there is a new and increasingly popular use: taking the cash out to make more cash or to invest in cryptocurrencies like Bitcoin.
For some, that means investing in the stock market, and for others, it is buying the more real estate. Rental demand is still very high, especially for single-family homes in all parts of the country, and a new breed of rental management and investment company is making it much easier to become a landlord if they so choose.
- 23 Jan, 2018
- Josh Smith