Written by: Peter Minkoff
Whether you are planning on selling your property or just looking to refresh your space, a remodeling project is often a large undertaking. Apart from planning and preparation, your biggest concern might be how to pay for your renovation. From smart prioritization to considering the more overlooked aspects of home improvements, here are some ways you can finance your project effectively:
Determine Your Priorities
Refurbishment projects can come in all shapes and sizes, from small aesthetic improvements to important structural work. To determine the amount you will need to spend on your remodel, set your priorities. Start with the necessary work that must be done, such as updating rotten roofs, fixing burst pipes, or replacing broken appliances. Then, consider any cosmetic aspects you would like, whether that’s switching out a shower for a bathtub or investing in new home decor. When you determine the necessary amount for critical work, it will be easier to budget for your project and leave some extra room for small design luxuries.
Budget and Save Up
Once you know how much it will cost to renovate your home, it’s time to finance your project. The safest option is to create a realistic budget, considering the estimated expenses and leaving some legroom for unexpected costs, and then save money for your refurbishment. If you don’t already have some cash in your savings, aim to put around 20% of your income into your savings account each month until you have enough money to begin your home improvement project. This will likely take some time, but it will save you plenty of stress when you finish the remodeling with no debt.
Shop Around for Rates
While you could always save money by performing smaller tasks yourself, it’s recommended to hire experts for more specialized work such as plumbing, electricity, and construction. Before deciding on a technician, however, don’t hesitate to shop around. Do extensive research, find reliable professionals in your area, and weigh their expertise with the cost of their services. If you’re in Australia, for instance, Chiswick Plumbing services can be the right option for your home improvement project. They provide the perfect combination of affordability, knowledge, and expert solutions, giving you peace of mind that the important plumbing work in your home is done correctly and efficiently.
Take Out a Loan
If you simply can’t save enough money for your remodel, or you can’t seem to find affordable solutions, you could also decide to finance your project with a loan. There are many options you could choose from, including home improvement loans, home equity lines of credit, cash-out refinance, credit cards, and more. Depending on the work you are doing, there may also be some government grants available for specific renovations, such as improving the accessibility or sustainability of your property. Before deciding on a loan, thoroughly research each option, consider your income and how much you can reasonably afford to pay each month, and always visit several financial institutions to find the most suitable alternative.
Raise Your Home’s Value
Although home improvements are meant to enhance your everyday life, you can also take this opportunity to improve your finances, especially if you’ve chosen to take out a loan. Many refurbishments can increase the market value of your property, helping you to make a profit when you decide to sell your house in the future. For example, modern kitchens and bathrooms are quite popular, adding tens of thousands, if not more, to your asset’s worth. These improvements are also simple to do – just a few new fixtures and appliances can significantly enhance the appearance of these rooms. Other ideas include increasing the energy efficiency of your home and improving the curb appeal to raise the selling price.
In conclusion, financing a refurbishment project takes time, careful planning, and consideration. Keep these tips in mind to find the best solution for your financial situation and overall home improvement goals, and easily create the living environment of your dreams.