Managing a remodeling project can be stressful and time-consuming. You will be dealing with a contractor, budgeting your spending, checking multiple designs, and evaluating various color schemes for weeks on end.
Living in the same house can be mundane; it lacks life. Remodeling is an easier and cheaper way to achieve that newness. Homeowners avoid remodeling because they feel they can’t afford it. But in the long run, it has been proven, that small home-improvements can increase your property value.
Why should you renovate?
- It increases your property’s value. The return on your remodeling project will depend on the location of property and quality of work. Ask your state agent about the popular remodeling trends that reap value at resale, before starting your project.
- Remodeling can increase rental income. A higher rent can be charged for an additional room or luxurious bathroom renovated on your property.
- With time, the need of your family might be changing. You might need a nursery or an additional room for your teenager. The functionality of your home can be increased by making small changes.
- Bored living in the same house, but can’t afford relocation. Remodeling is a cheaper option for you.
How to finance your remodeling
A survey indicated that a major kitchen remodeling can cost an average of $50,000, whereas, small renovation can cost an average of $10,000.
On the other hand, complete home remodeling job will cost you around $150,000.
You may not have enough cash-in-hand to finance your remodeling project, but various financing options are available in the market. Consider all your options before starting your renovation project. Hasty decisions can leave you with a partially finished floor work.
Here are some financing options, you can avail.
Personal loans
This type of loan can be used for a variety of things, including a kitchen or bathroom renovation project. Your credit rating, income, and credit history will determine your loan approval.
Before applying for a loan, ask a home builder or a contractor for a remodeling estimate. Add a 20-30 percent of cushion amount, because remodeling tends to deviate from budget. During the remodeling process, you may find a broken pipeline that needs fixing and this cushion amount will make repair possible.
Home equity loan
Your home is an asset, against which you can borrow money on a fixed interest rate. 80 percent of your home’s value can be acquired in a home equity loan. So, big renovation projects can be achieved with these loans.
Home equity line of credit
Instead of receiving the loan in one lump-sum amount, it is divided into a predetermined time frame by the lender. The borrower can withdraw money, just like a credit card. The credit circulates/revolves, as you pay and withdraw money over time.
Savings
The easiest and safest way to finance a remodeling project is to use your savings. Plan a renovation project and save for it. With tight budgeting and some extra work-hours, a sufficient amount can be saved for a luxurious bath or kitchen.
Credit card
Around a quarter of homeowners use a credit card to finance their renovation. Try getting a low-interest card. Healthy credit rating will also reduce the risk attached to your loan, therefore, maintain a good credit history.
Construction loan
Similar to a personal loan, construction loans are specific to a project taken up by the borrower. So, if you are aware of your construction specification, this type of loan is best for you.
Take help from an experienced home builder to get a fair quote for your project. Showcase Homes & Remodeling, Inc provides handyman services, custom home building, interior designing and remodeling services in Bossier, Parish for small and large residential structures.
