Montecito estate owners who are considering renovating a home might find this article in the Wall Street Journal interesting. According to a recent survey of 1,258 homeowners by LightStream, the online lending division of SunTrust Bank, about 62% of Americans are planning some sort of renovation this year. That’s up almost 9% from last year. Even more, annual spending for home improvements is on the rise and is expected to hit 7.6%; up from 4.3% during the first to third quarters of 2016.
While renovating one’s home is not unusual, it’s interesting to look at the motivation behind the decision. Unlike the average homeowner, affluent property owners don’t necessarily consider whether their home improvements will pay off when it comes time to sell. They know that high-end homes receive top dollar because of their location in an exclusive area and/or have a great view, not necessarily because they have been renovated.
The wealthy are more likely to add things like a new master suite or a state-of-the-art gym because that’s what they want, not because those projects will add value. Another interesting difference is that middle-class homeowners tend to place emphasis on materials and finishes when the time comes to renovate. Affluent homeowners, on the other hand, are more concerned with renovating to their own personal taste because they believe the next buyers will redo the home to reflect their own wants and needs.
The article goes on to say that 62% of homeowners planning renovations this year will have to dip into savings, use a work bonus, or exercise a stock option to make their dreams become a reality, while the wealthy tend to pay for renovations in cash. The bottom line: affluent homeowners can not only afford renovations, they expect them.
Are you interested in purchasing a new estate to renovate to your own personal taste in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities? If the answer is YES, then please call me at 805.886.9378 or email me at Cristal@montecito-estate.com. I have several exclusive listings right now as well as the local contacts to make your renovations a reality.