Pool loans: learn about everything from taxes to property values
If you’re thinking about investing in a swimming pool to cool off during the summer, raise your property value, or entertain guests, then we have some great news for you. Aside from being a fun way to relax and get exercise, swimming pools may have financial benefits to you as a homeowner.
Benefits of investing in a pool
Adding a pool to your house can:
Increase the property value by 5 to 8 percent
Create more demand for your home vs. other homes nearby if you decide to sell
This is typically a selling point in areas with warmer temperatures or where there is a high demand for pools
Provide you with more networking opportunities in your community
Now that you know how you may benefit from adding a pool let’s talk about financing it.
Ways to pay for your pool
A swimming pool can cost anywhere from $14,000 to $80,000, on average. The range depends on multiple factors like the size of the pool, if it is above the ground or inground, and potential additions like a waterfall, diving board, or jacuzzi. If you don’t have the full amount available to pay upfront, you can fund your pool by taking a pool loan¹ from a lender.
In many cases, a pool loan is simply a personal loan taken to pay for home improvements. At BHG Money, we provide personal loans from $20,000 to $200,000* to cover your biggest home improvement projects. And with extended repayment terms,* you get monthly payments that are affordable and easy to manage.
The other type of loan you may consider if you have considerable equity in your home is a cash-out refinance. This option gives you the ability to take out cash to improve your home. You can add a pool as well as pay for accessories like a new deck, patio furniture, and more. Just keep in mind, you’ll be restarting your mortgage and owe more overall.
Tax deductions for home improvements
One thing to note about home improvement loans¹ is that the interest paid may be tax-deductible if the loan is secured by your home and is being used for substantial repairs.
A tax deduction may also be possible if you install a pool for medical purposes and meet certain requirements, though these are unique circumstances. For example, in August of 1983, Herbert Cherry went to court and was able to write off pool expenses for a tax deduction because of his health situation, the inability to find a nearby pool at a time that worked for him, and because his pool was used for medical purposes.
Regarding any possible tax deductions, talk to your accountant for more information.
You can also review helpful resources like this page on the IRS website, which provides tax information for homeowners.
Personal loans are a great way to finance your backyard paradise. And, as illustrated above, they could result in various advantages. If you’re looking at your options, call our team today or use our Payment Estimator to see how affordable your outdoor oasis could be.
*Terms subject to credit approval upon completion of application. Loan sizes and interest rates vary and are determined by applicant’s credit profile. Call for complete program details. For California residents: Consumer and commercial loans are made or arranged pursuant to the California Financing Law, License No. 603-G493.
1Loans funded by Pinnacle Bank, a Tennessee bank. Member FDIC. Equal Housing Lender