I'm locked in sub 3% and don't want to impact that, but if I wanted to build a pool and do some other projects in the house, am I able to take from the equity I already have? We're planning to stay in this home a long time.

I'd like to pay the home off for the simple satisfaction of having no debt, but since we have very little debt right now (one car payment and the mortgage), I'm just curious about options outside of spending all that cash.

Just curious - thanks for not criticizing my desire for a pool

Yep. I get it.

Right now my thought process is "save up cash for renovations" but I'm not familiar with HELOCs so I wanted to make sure I understood if they were generally flexible/easy to use.

My kids are 9,6,2 and having a pool for them would be really fun.

But I know the smart thing is not to invest in something like that.

First, this is very individual focused. I definitely know people who've regretted it and I know people who haven't. As someone who's actively looking at houses, pools don't really bring any value where I'm looking, so it's almost a 100% sunk cost. I've also seen neighborhoods where they have 60%+ return....

For the OP, HELOCs are pretty easy, though the process was drawn out. I want to say it took us a couple months from application to close.

It's an open line of credit and you can withdraw whatever you want at anytime. We got one for a home remodel about 18 months ago. They had a 0.9% interest for 12 months promo. About 6 months in the rates started climbing so we actively paid it off before the end of the promo. I think our rate is around 8%, I know you can actively shop for better, though. But that wasn't a huge concern when we applied, and the promo outweighed the later higher prime + delta.

The one negative, for me, is they really seem to want you to pay interest only for like 20 years or whatever the time was. There wasn't a way for us to pay more than our interest other than writing and mailing a check. Seems silly, but whatever.

Is there a way to understand the value it would bring? Is there a typical formula?

We live in a nice neighborhood of new builds and have a 1.5 story home. 2800 sq Ft surrounded by 3500 sq Ft monster homes. I built on a larger lot (75x130) so we'd have a smaller floor plan on a larger lot. I think a pool would turn our backyard into a retreat if done the right way.

Without getting into the financials too much, a heloc would be a supplement to cash on this project. I think I'm just still a couple years away from doing it debt free.

htxag09 said:

---

First, this is very individual focused. I definitely know people who've regretted it and I know people who haven't. As someone who's actively looking at houses, pools don't really bring any value where I'm looking, so it's almost a 100% sunk cost. I've also seen neighborhoods where they have 60%+ return....

For the OP, HELOCs are pretty easy, though the process was drawn out. I want to say it took us a couple months from application to close.

It's an open line of credit and you can withdraw whatever you want at anytime. We got one for a home remodel about 18 months ago. They had a 0.9% interest for 12 months promo. About 6 months in the rates started climbing so we actively paid it off before the end of the promo. I think our rate is around 8%, I know you can actively shop for better, though. But that wasn't a huge concern when we applied, and the promo outweighed the later higher prime + delta.

The one negative, for me, is they really seem to want you to pay interest only for like 20 years or whatever the time was. There wasn't a way for us to pay more than our interest other than writing and mailing a check. Seems silly, but whatever.

---

Sure, it's an individual/each their own thing. I was responding to his 3 kids w/ their ages post, however, which (my data) suggests a pool is VERY popular.

The bold part above is strange to me. You contradict yourself. Almost 100% sunk cost means there are no neighborhoods getting a 60% return.

Here's what I've noticed (anecdotally): in the last 12 months, homes with a pool in our market are bringing in a very good return because new pools are so damned expensive to build today.

I would suggest pools are at a premium today. Don't look at data from pre-2020. Look at the last 12 months.

htxag09 said:

---

I don't think I'm contradicting myself. I said it's neighborhood dependent.

Some neighborhoods have higher returns on pools than others.

The other aspect is you're introducing another taste/aging variable. A pool is no different than a kitchen in that it can look dated when you go to sell in 10+ years and can be a negative/be a bargaining chip to lower price.

Edit: to be clear, I'm not saying pools are a bad decision, I think often, probably more often than not, they're a good decision. I'm just saying I don't agree with your initial statement that you 100% won't regret it or it's a no brainer. There are various factors at play and every situation is different.

---

You absolutely contradicted yourself, but I'll let it go.

Back to the OP - you have small kids. You're considering a pool. The enjoyment you'll experience with your kids in the age range they are now will be worth infinitely more than any financial return you experience if/when you sell your house. In my opinion.

That's a totally fair question. I think the correct way to look at this is not as an "investment" but a "want", and there is nothing wrong with that. If you happen to get a bump in value, great, but I wouldn't make that part of my decision making matrix. Typically, I'm not financing "wants", even though there can be huge intrinsic value to you and your family, which is no-doubt meaningful.

Thanks. I completely agree. Just curious about options. I'd really like a pool for the kids and understand it isn't ever going to increase the value by the same amount I paid, but boosting value by 60% of the cost sounds like a no brainer to me.