Millennial homeowners with access to home equity lines of credit (HELOCs) have plans for their money that stray from the traditional home improvement projects, according to a new survey released by Citizens Bank
In a poll of 1,003 homeowners, 87 percent of respondents with HELOCs stated they were optimistic about their property’s current value, with 74 percent claiming to be interested in starting a home improvement project within the next 12 months.
However, not all HELOC funding is going into the property, especially with Millennial homeowners – many members of this youthful demographic is planning nontraditional uses for HELOC money including financing a new business venture (45 percent), big-ticket purchases (44 percent), taking time off work to support or care for family (44 percent) and taking a vacation (36 percent vs. 17 percent).
“Whether consolidating debt, financing education or accessing emergency funds, HELOCs can enhance your life, not just improve your home,” said Brendan Coughlin, President of Consumer Deposits & Lending at Citizens Bank. “Property values are at record highs across most of the U.S., driving increases in consumer optimism. Having access to a HELOC provides real-time access to their growing home equity, giving customers flexibility to improve their home, manage their finances, and peace of mind in case of an unexpected expense.”