It costs over $40,000 for an average home renovation and up to $140,000 if you are looking to take on a more massive project. This isn’t the kind of money that most people have lying around. However, the upfront costs are almost always worth it. Firstly, you’ll be adding significant value to your home. Secondly, you will spend more time in your home than any other building on Earth, so it can be hard to put a price on designing the perfect environment for you and your family. The tricky part is finding the funds in the first place, so here are a few tips.
If you are a homeowner looking to do some significant work on your property, then the chances are you already have some savings stashed away. These might be for a new car or a vacation. However, if you want to be able to pump funds into your renovation quickly, then why not reallocate these funds?
A family of four can expect to spend $4580 on their annual vacation. It might be hard to break the news to the kids that they won’t be going abroad this year, but it’s the quickest way to find the funds you need. Instead, consider taking a budget vacation closer to home and using the money you saved on flights to design a new kitchen that will bring your family decades of value.
Remortgage Your Home
If reallocating savings hasn’t provided enough funding for your renovation design, then it’s time to start thinking about loans. Check your local government’s policies regarding mortgages and see if you can remortgage your home for a quick injection of cash. Doing so usually isn’t difficult because the renovation will increase your home’s value by an average of 56% of the cost of the remodel. This means you are considered a low-risk investment by banks.
If you are concerned about borrowing too much, then keep your loan to a minimum. Only take out the amount that you cannot afford. If necessary, scale back your renovation project. Small-scale remodeling such as replacing a garage door tend to offer a more substantial payback of up to 75% of the cost of a remodel.
Reach Out to Friends and Family
Getting your friends to pay for your home renovation might seem a bit cheeky, but it could be your best option. Use a crowdfunding site to get started. It is best to do this if there is a special occasion, such as a wedding. You can ask for donations to your home remodel rather than wedding gifts. Your friends and family won’t be spending any more money, but you’ll receive something of far greater value.
Renovating a house could be one of the most satisfying ways of spending your money. It’s not cheap, but with intelligent saving and some hard sacrifices, you can raise funds. Consider taking out a mortgage or other loan if that makes financial sense or ask for donations from your friends and family. After a bit of time, you should have the cash injection you need to create your ideal home environment.