While it can be fun to daydream about your improved home, it can get surprisingly costly to execute - financially and emotionally. With increasing production and labor costs, people are spending 60% more on home renovations now than in 2020.
In this episode, Modearn™ advisors Joe Seetoo and Kevin Rex share their personal experiences with renovations and discuss strategies to mitigate remodeling costs (as well as the stress).
Here are some key takeaways from their conversation:
- COVID-19 and lifestyle changes have made homes more important as places of rest, work, and social hubs, increasing the desire for upgrades.
- Joe shares his experience with a major remodel that required moving his family out due to extensive structural work. Large-scale renovations can be an incredibly stressful process, both emotionally and financially. It is important for couples to prepare for the amount of time and energy remodeling can take, from interviewing contractors to making sure your vision aligns with your partner's and having to make quick decisions over the phone during the work day.
- Kevin and Joe discuss the importance of budgeting and planning, noting that remodeling often exceeds initial estimates by 20–30% or more.
- They explore various financing options, such as home equity lines of credit, 401k loans, and borrowing against securities. Joe also recommends being intentional with your short-term cash management; for example, he used money set aside for taxes to fund renovations and replenished that tax-paying account with income from his job.
