Pool Loans: Learn About Everything from Taxes to Property Values

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.

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 loan from a lender.

In many cases, a pool loan is simply a personal loan taken to pay for home improvements¹. At BHG Financial, we provide personal loans from $20,000 to $250,000² to cover your biggest home improvement projects. And with extended repayment terms^2,3, 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.

One thing to note about home improvement loans 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, contact our team today or use our Payment Estimator to see how affordable your outdoor oasis could be.