Don’t drown in pool debt
Summer heat waves got you ready to make your pool oasis a reality? Before you dive into that big investment, there are a few things you should know.
First, if you think you’ll recoup what you spent on the pool when it’s time to sell your house, guess again.
According to Homeadvisor.com the national average cost to install an in-ground pool is $49,265. Depending on size and whether you choose a foundation of concrete, fiberglass or vinyl-lined, pools generally run between $35,555 and $64,543.
So what kind of return can you expect in terms of home value? Experts say you gain at most, in warmer climates, about 7%. In some cases, if potential homebuyers aren’t interested in taking on the cost and time required to maintain a pool, it could actually put you at a disadvantage.
To get a realistic idea of how much value your home might gain, review recent house sales in your area and compare the value of properties with and without pools.
However, when it comes to pool ROI, rather than focusing on gaining home value, you should instead think in terms of family fun and improvements to your quality of life.
With the exception of large national or regional pool builders, most companies want their money up front and paid in full. That means financing your new pool is probably going to be all up to you, whether you use saved up cash, a home equity loan, personal loan or combination of financial sources.
The cost of financing your pool is something to consider when calculating your pool budget.
Here are a few other considerations before you take the big plunge:
Maintenance: According to Homeadvisor.com, keeping the pool clean and chemically balanced can cost about $250 a month if you go the weekly DIY route. Hire a professional and the costs jump to about $500 a month. You can also expect to see a bump of at least $50 per month in your bills.
Insurance: As far as insurance companies are concerned a pool increases the chance of someone getting hurt on your property. That means you will be paying more for homeowners insurance.
Additional construction costs: Fences, dirt removal, electrical costs, retaining walls and permits are all part of the pool installation process that adds up. Also, if in an HOA, submit your plans and make sure they give their approval for use of the impervious space.
