Turning a house into your dream home is a long-term plan for many people; however, carrying out extensive renovation work is often expensive. It is inadvisable for you to cut corners and do things on the cheap, as while it might cut costs, the result might be ugly and unsafe, making your dream home more of a nightmare. Read on to discover four ways to finance your home renovation, ensuring that your end result is aesthetically pleasing and completely safe to live in.
1. Personal savings
If your home renovation is a long-term goal that you are not seeking to achieve immediately, setting up a personal savings account specifically for your dream renovation is a good way of saving up funds. If you can afford it, you could deposit a set amount into your savings account each payday, ensuring that you are consistently building your savings. Or, simply resist the urge to blow any leftover cash on unnecessary expenses instead of depositing it into your renovation savings. You might prefer to save for your renovation work all in one go or do it bit-by-bit as you can afford it. For instance, saving for your dream kitchen, then saving for new windows and doors.
2. Personal loan
When carrying out your renovations, you may come across surprise expenses that you had not factored into your budget. For example, you might have removed wallpaper to discover faulty plasterwork that needs to be fixed, or an accident might occur involving a smashed set of brand-new bathroom tiles. Personal loans provide you with quick access to money in as little as two hours, and you can qualify for one even if you have a limited credit history. They can be accessed at any time in any place; for instance, look for loans in Dallas if you are located in that city. Your repayment schedule will take place over several months rather than weeks, making it easier for you to repay your personal loan in full.
3. Home equity loan
A home equity loan – also known as a second mortgage – provides you with a lump sum that is paid back over several years in regular fixed monthly payments. This is a great option if you know exactly how much your renovation work will cost, as you receive all the money upfront. However, as your home is used as collateral, there is the risk that it could be foreclosed should you fall behind in repayments.
You might occasionally receive an unexpected windfall in your life. If a loved one had died, for example, you might become the beneficiary of their will and receive an inheritance. Although this is undoubtedly a difficult time for you, one benefit might be that you can use your inheritance to finally carry out the home renovation work you were previously unable to afford. You might find that turning your house into your dream family home is the best way for you to remember your greatly missed family member.
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