Finances are a top consideration when building a pool and have a significant influence on the pool size and features you can add.
Pool construction or installation is a capital-intensive project both for residential and commercial pools. A pool costs at least $20,000 to $30,000, but it costs more depending on the features and size of the pool.
A pool is, therefore, an investment, which you should not jump into because your neighbors have one. You need to know a few things when financing your pool.
You Have Many Options
The first thing you need to know is that you have many pool financing options you can explore. These include:
- Your savings
- Home equity loans
- Personal loans
- Funding through a pool builder
- Home equity line of credit
- Mortgage refinancing
- Borrowing against your 401(k) account
Paying for the pool without a loan would be the best option. But if your savings cannot cover the entire amount, then you must scrutinize other financing options before you settle on the final one.
Some of the factors that will influence the type of loan you choose include:
- Your budget and the pool you intend to construct
- The estimated cost of the pool from your Jacksonville pool contractor
- The loan repayment terms
- The full cost of the loan
Taking time to understand what options are available to you can help you avoid a long-term debt that ends up being a burden.
A Pool Might Not Increase the Value of Your Home
Having a pool in your home is not a guarantee that the property will increase in value. Most homes retain their market value, or it might increase up to a maximum of 7%.
Therefore, you must think again if you are building the pool to sell the house at a higher price. However, a pool is a good investment to raise the value of your home if:
- You are in a good neighborhood where most homes have a pool
- You live in a warm climate area where swimming is a feasible all-year-round
- You have enough space to accommodate the pool and a garden or play area
- The design of the pool matches the environment
- You keep the pool well-maintained
- The pool is not so old (older pools fetch lower prices)
- You find the right buyer
However, if you are building the pool to improve the quality of your life, the value of the home after installing the pool will not matter.
Financing a Pool Is Expensive
Unless you are paying from your savings, sourcing outside funding to construct a pool can be expensive. Pool construction requires at least $20,000 for a simple pool. However, the cost of the pool rises with the type of material, the design, and the features you require on the pool.
Loans are also expensive, depending on the interest you have to pay. Different lenders offer different rates and payment duration, which will affect your finances for sometimes.
You Might Not Qualify For Financing
You have calculated the cost of the loan, and though it is high, you still decide to go through with your project. However, the lenders might find you too big a risk to finance.
Your credit score is the most significant determinant of whether you secure financing and the interest rates you pay. Having a bad credit score ruins your chances of being financed.
You might, therefore, have to work on your credit before you start constructing a pool. If you are still fixed on the project, you can ask your Jacksonville pool contractor to help you find other financing options.
Maintaining the Pool Is Costly
Getting the pool constructed can feel like such a relief. However, you still need to maintain the pool to ensure it is safe to use. You also have to protect it from the elements.
Pool maintenance involves:
- Water cleaning
Pool maintenance can set you back up to $5,000 a year, depending on the extent of the maintenance and your location. You must, therefore, take such consideration of such expenses before you install that pool.
The Decision Is Yours To Make
With these facts in mind, you can make a sound decision about financing a pool. While the process might be expensive, you can take several steps, such as:
- Saving up for the pool instead of taking a loan
- Paying a larger down payment to reduce the amount you have to borrow
Finally, you can consult a Jacksonville pool contractor to guide you through the process, including the best financing options and the costs