It doesn't sound reasonable - making money by borrowing money - but it is possible with home improvement loans. Your home is your biggest asset, and you'll do everything you can to make sure it stays that way, even in this time of stalling house prices. And with renovations, extensions, restorations and decorations you can beat the house price dip - the best way to maximise your chances of it keeping the house's value is by improving it. But this is a costly process that can sometimes sap funds - that's why you need home improvement loans, loans taken from the equity in your home to fund home improvements. It's the loan that will make you a profit.

Of course, before taking on any improvements and taking out home improvement loans, a plan has to be made and homework must be done. Find out what is the best way to improve your property's worth - talk to a surveyor or a local estate agent and ask them what is doing well in your area. Is it extensions? Bigger garages? Loft conversions or an extra bedroom? Make sure your improvements don't turn into a folly. It's always best, however hard it may be, to detach your emotions from the decision. You may be craving a new gym, but would the less exciting option of double-glazing be a better money-spinner? Or would a new kitchen make you more of a profit, even though you would love a second bedroom? If you want your home improvement loans to make you money, it has to be for the good of the house, not for the good of you.

After you know what you want, work out how much it is going to cost, and how much home improvement loans you are going to need. Are you going to be taking on the work yourself, or will it be better to get a professional in? What about if things go wrong - anything from the weather, injury or illness to legal squabbles can hamper the best laid plans, so have a contingency, emergency option. If things go very wrong, if all of your plans are laid to waste, how much will it cost? Home improvement loans can be flexible, but only after they have been carefully planned out.

It can be exciting taking on house work with home improvement loans, but to make sure of profits, you must keep a cool head. Check over your finances, all of your incomes and outgoings, to be sure that you can afford the home improvement loans. And it's always prudent to remember whether the work will affect your income, especially if it's a huge project, or you are doing the lion's share of the work yourself. Too many DIYers find themselves in financial difficulties after the unthinkable happens - to make sure you do not fall into the same trap, think the unthinkable before you take out home improvement loans.

Also, get some advice if you are planning to use home improvement loans to add value to your home. An adviser will be able to give you some help when it comes to finding the best home improvement loans that will work with your improvement plans and will be there whenever you need the money.