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Introduction

Investing in renovations can be a financial burden for homeowners, but it can also be a smart decision. A recent video discussing how to beat inflation and afford home renovations provides valuable information to homeowners looking for ways to improve their home value. In this article, we’ll delve deeper into the reasons why homeownership is a good investment and how DIY projects can provide a big return on investment. We’ll also take a look at the potential downside of overextending oneself financially and how the gig economy can provide a way to make extra money to supplement one’s income.

Homeownership is a good investment, but don’t overextend yourself financially

One of the main takeaways from the video was the idea that homeownership is a good investment in the long run but it can also come at a financial cost. While buying a home provides financial stability and the potential for appreciation, it can also be a significant expense upfront. According to a report by Zillow, the average U.S. homeowner spends $9,000 on home improvements in the first year of ownership. It’s important to understand the balance between investing in upgrades and overextending oneself financially, however.

DIY projects have a high return on investment, and renovating can beat inflation in the long run

One solution to off-setting the cost of home renovations is to tackle DIY projects that provide a high return on investment. According to a report by HomeAdvisor, homeowners can expect a 300% return on investment for certain DIY projects. Instead of hiring contractors to complete major renovations, homeowners can focus on smaller projects that they can complete themselves using online resources such as YouTube tutorials. In the long run, these projects can provide stability and help homeowners beat inflation.

Building materials’ costs are going down, but DIYers may not see a significant price reduction until later

Although the cost of building materials has decreased recently, this may not be reflected in the prices for consumers purchasing materials for home renovations just yet. For example, the cost of lumber has decreased by 50% since May 2021, but it may take several months for DIYers to see this drop in the retail market. DIYers may want to consider waiting for the overall cost of materials to decrease before tackling major renovations.

The gig economy is a way to make extra money for those experiencing financial difficulties

The gig economy can also provide opportunities for homeowners to supplement their income during a time of financial stress. Many people are embracing the gig economy in order to earn extra money on the side. This may include freelance work, selling products online or offering handyman services to local homeowners. The video provides a program for viewers to set up their own home-based handyman service to take advantage of the market need for skilled workers.

The labor market has a massive shortage of skilled workers

The video also emphasizes the importance of investing in oneself and learning new skills to weather economic downturns. The economy’s current climate has created a skills gap for many trades jobs such as plumbing, electrical work, and carpentry. By taking the time to improve their skill set or investing in further education, homeowners can take advantage of the current market need for skilled workers.

Conclusion

In conclusion, there are many ways for homeowners to beat inflation while improving their home. DIY projects can provide a big return on investment and supplementing one’s income through the gig economy can also provide financial stability. However, it’s essential to make informed decisions and avoid overextending oneself financially. By investing in oneself and learning new skills, homeowners can weather economic downturns, take advantage of the current market need for skilled workers, and ultimately protect their financial future.

FAQs

1. How much can homeowners expect to spend on home improvements in the first year of homeownership?

• The average US homeowner spends $9,000 on home improvements in the first year of ownership.

2. What is the return on investment for certain DIY projects?

• According to a report by HomeAdvisor, homeowners can expect a 300% return on investment for certain DIY projects.

3. What is the importance of the gig economy for homeowners?

• The gig economy can provide opportunities for homeowners to supplement their income during a time of financial stress.

4. Why is it essential to invest in oneself and learn new skills?

• The economy’s current climate has created a skills gap for many trades jobs. By investing in oneself and learning new skills, homeowners can take advantage of the current market need for skilled workers.

5. Can the cost of building materials be expected to go down in the near future?

• Although the cost of building materials has decreased recently, it may take several months for DIYers to see this drop in the retail market.