Construction costs are rising at record rates – could a home improvement loan help?
A new report from Corelogic’s Cordell Construction Cost Index (CCCI) shows a record growth rate in home construction costs in the year through September 2022. If you were looking to make changes to your home, you might suffer an unpleasant shock. .
In the 12 months since September 2021, construction costs have increased by 11%. This is a quarterly increase of 4.7%, significantly higher than the 2.4% increase of the previous quarter.
The construction industry has suffered the dramatic effects of inflationwith the Consumer price index (CPI) at a record high. This affected materials like wood and metal, leading to increased costs for things like housing frames and reinforcement.
So where does this take you? Well, rate hikes might have increased your home loan repayments and made renovations more expensive, but there are ways to make your renovation dream a reality.
How can home improvement loans help you?
At a time when the the housing market is in decline, home renovations can be used to add value to your property. When it comes time to move, you might end up recouping the money you spent on those home renovations.
If you’re looking to make an energy-efficient addition to your home, a green loan might be worth a look. These will offer similar options, but as an incentive to switch to green energy, they may offer lower interest rates.
The national average spent on home renovations, according to information from Suncorp, was $63,188 in 2020. This will likely have increased significantly with rising construction costs. There are over 20 unsecured loans in the Mozo database that allow you to borrow this amount of money, and even more when your loan is secured by property.
We’ve rounded up a few loans to start your search below.