Is this really the right time to invest in home upgrades?
- I have several home improvement projects on my to-do list.
- I won’t be doing any of them this year.
- There’s a simple reason why I don’t think it’s a good time to invest in home upgrades.
I’m hoping to do several upgrades to my home soon, including converting a bedroom into an office as well as finishing a part of my basement to add a full playroom for my kids so I can reduce the toy clutter that’s pervading every corner of my house right now.
I have the money set aside to undertake these projects. And I could easily afford to do them in 2022 without taking out a new mortgage or personal loan. I had originally hoped to do them this year since I was financially ready.
But despite these facts, I’ll be steering clear of not just these projects but any major or minor upgrades in 2022. In fact, I’ll be putting off any changes or fixes to my home unless there’s a pressing safety issue or repairs that need to be done because they put my property value at risk.
Here’s why I’ve opted out of renovating this year despite my original intention to move forward with making some big changes.
A good reason to delay home improvement projects until later
The biggest reason I’ve decided not to complete my desired home upgrades this year is because of the rampant inflation, which is the highest in four decades.
See, the price of both goods and services has risen dramatically and is likely to continue to do so throughout 2022. Both materials and labor for home improvements aren’t immune to these rising prices. If I decided to undertake my renovation projects this year, I could end up paying seriously inflated prices.
There are also ongoing supply chain issues which have resulted in many builders indicating they’re experiencing months-long delays on getting parts. Because of the problems getting materials, I might have to settle for items that aren’t exactly what I want. Or the projects could end up taking months longer than expected since my contractor could get started and then be forced to wait for materials in order to finish. I don’t want to live in a construction mess for months while we wait for materials.
Will 2023 be a better time for home improvement projects?
Of course, there’s no guarantee this situation will improve dramatically in 2023. There are many factors that go into inflation rates, and the supply chain crisis is caused by myriad issues, including the ongoing effects of the COVID-19 pandemic. Relief may not come anytime soon.
But since none of my improvement projects are absolutely essential, there’s little reason for me to spend a lot more money than necessary — and to undergo a great deal of extra disruption — just to get them done now. Instead, I’ll be waiting and watching for indicators that the economic conditions adversely affecting my ability to upgrade my home will wane. Once they do, then I should be able to move forward with the upgrades I want at a much more affordable price.
While everyone’s situation is different, many people may find they will be better off waiting to make any large non-essential purchases, just as I’m doing, in hopes the decades-high inflation surge will come to an end and the supply chain will be restored to more normal conditions in the upcoming years.
A historic opportunity to potentially save thousands on your mortgage
Chances are, interest rates won’t stay put at multi-decade lows for much longer. That’s why taking action today is crucial, whether you’re wanting to refinance and cut your mortgage payment or you’re ready to pull the trigger on a new home purchase.
The Ascent’s in-house mortgages expert recommends this company to find a low rate – and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn’t influence our opinions of products, we do receive compensation from partners whose offers appear here. We’re on your side, always. See The Ascent’s full advertiser disclosure here.