Many of us have gazed out to our backyard, picturing cocktails by the pool while the kids battle with their foam noodles and steaks sizzle on the grill. But installing and maintaining a swimming pool is only a pipe dream for many people.
At an average cost of $40,000 for a 600 sq. ft. concrete pool, it is not a minor purchase. By the time you add in landscaping, safety fences, lighting, and maybe a spa, the cost can easily climb past $70,000. It really becomes a major purchase. For most homeowners, the best way to finance a pool varies depending on your situation.
When Pool Financing Might Make SenseThe decision to finance any home improvement move comes down to its perceived value to the owner. It doesn’t always make sense to finance an improvement that adds little or no value, especially considering the interest costs over time. Generally, borrowing for home improvements should be restricted to those that will increase the value of the home so the increased equity can offset the cost of the loan. A swimming pool is one type of improvement that doesn’t always add value and, in some cases, can even hurt the value of a home.
When a Swimming Pool Might Add ValueWhile determining if a new swimming pool makes sense, it is important to understand whether or not the addition will add value to your home. Here are a few situations where a new pool may add value to your home:
Of course, none of this takes into account the value you as a homeowner and a family place on the swimming pool for increasing your quality of life and enhancing the enjoyment of your home. That may be priceless depending on your perspective. So, if that is the extent of the return on investment you are looking for, it’s hard to lose. However, if you need to finance your pool, it is important to make sure you do it right to keep your overall costs down.
Jeff Gitlen writes about a wide range of finance topics including everything from student loans to credit cards to small business financing. Jeff's work has been featured on a number of sites including Bloomberg, CNBC, Forbes, Market Watch, and more.