Everything you spend your money on can be considered either an asset or a liability. Well some things are bought for pure enjoyment, but take a car, for example. Unless it's some rare vintage model, destined to be kept in a weatherproof garage with wax and a chamois leather always to hand, the chances are it will lose value the moment you drive it out of the garage, simply because it has suddenly become second-hand. This is a textbook liability. Electronic equipment is even more notorious for losing resale value because it very quickly goes out of date. With some high-tech items becoming completely obsolete as well as depreciating rapidly.

So can every purchase be considered a liability? Of course not. Your home, for example, can be a fantastic asset, especially if it is given a little love and attention. Home-based assets can be worth much more than the sum of their parts. A house with a conservatory is worth more than an identical house and a showroom conservatory combined. Indeed, home improvement loans can be one of the few types of loan whose interest is more than covered by the added value that can be gained from their use.

The reason is simple. If you have, say, double glazing, central heating, a converted loft or a new kitchen, more house-hunters will be interested in your home, and therefore you are less likely to have to lower the asking price through lack of interest. For most of us, it's difficult to come up with the several thousand pounds required for a typical project, so home improvement loans can be a godsend, particularly if you're looking to move house. If the improvement is indeed to increase sale value, consider a short-term or flexible loan, as you won't want to be paying off someone else's extension for the next ten years, and cashing in the loan can incur charges.

But if you have no intention of moving home in the near future, the home improvement project becomes even more attractive. You will be paying for a feature that you will be able to enjoy for the next few years and it may not cost you anything at all if the value of your home improves substantially because of it.

Experts agree that money spent on home improvement is definitely money wisely spent, so get online and seek out some great loan deals.