Home improvers are in good company with remodeling expected to overtake new home construction by dollar volume within the decade, according to the National Association of Home Builders (NAHB). Nationally, the most profitable project was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively.
“Studies show that outdoor remodeling brings some of the most significant returns on a homeowner’s investment,” said Bruce Christensen, vice president and general manager, Home Improvement, GE Money - Sales Finance. “Homeowners who want to make a sound investment and add value, are smart to focus on curb appeal and outside enhancements.”
Today’s economic environment and slow housing market may cause many homeowners to question whether improving their home is a wise choice? According to studies spanning decades, the answer is a resounding yes – especially when it comes to outdoor remodeling. In addition to exterior maintainance and changes that improve energy efficiency, landscaping can increase a home’s value by 15 percent, and enable homeowners to recover between 100 and 200 percent of their cost. According to a study conducted by Harvard University Joint Center for Housing Studies, households in neighborhoods with high home improvement activity have higher appreciation rates.
Christensen also points out that dollars invested in home improvements will be returned to the economy many times over, through the hiring of contractors and laborers, the purchase of building materials and in higher home resale values. And more contractors are providing financing programs with promotional or fixed payment plans that enable homeowners to fit changes into their budget. Notes Christensen, “The focus on outdoor improvements is evidenced by the fact that we are supporting more companies that provide landscaping, paving, painting and stonework services with consumer financing programs than at any time in our 20-year history.”
Exterior home improvements aren’t just for homeowners preparing to sell their home. Renewing landscaping and outdoor living spaces enhance daily enjoyment for the homeowner and provides areas for entertaining and a way to vacation at home.
“Making home improvements protects your greatest investment, as well as provides distinctive living spaces that enhance the beauty and enjoyment of your property for you, family and friends and the outside world,” adds Christensen.
About GE Money
With more than $200 billion in assets, GE Money, a unit of General Electric Company, (NYSE: GE) is a leading provider of retail banking and credit services to consumers and retailers in more than 50 countries around the world. With more than 130 million global customers, GE Money, based in London, UK, offers a range of financial products, including private label credit cards, personal loans, bank cards, mortgages, debt consolidation and home equity loans and credit insurance. More information can be found at www.gemoney.com. GE Money’s Sales Finance unit, based in Kettering, Ohio, provides private label credit card programs and financial services for consumers through dealers; national, regional and independent retailers; associations; contractors; manufacturers; healthcare practices; and service providers in more than 20 industries including: automotive, consumer electronics and appliances, elective health care, floor covering, home design and improvement, home furnishings, jewelry, music, powersports, outdoor power equipment, sporting goods and travel.
GE is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world’s toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
