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home renovation

7 Ways to Finance a Home Renovation

August 16, 2021

Investing in renovating a home is a decision worth its weight in gold. Home renovation can boost your home’s value, increase space and add comfort. A renovated home feels new, refreshing and cozy.

You want might be looking to make your current home into your ideal living space. Yet home improvement projects can be expensive. Here are seven ways to finance a home renovation.

1. Pay Using Cash or Liquid Assets

Most people want the cheapest option when they’re looking to finance a home renovation. Renovation loans can come with charges, fees and interest rates. But cash payment is a free option and it prevents accumulating debt.

You may have considered savings, bonds, CDs and checking to fund your project. As long as you have enough to spare, they’re the best way to improve your home. The only money or account you should not touch is your emergency fund.

If you opt for cash payments, make sure you have enough for the entire project. That way, you engage your contractor to ask for some discounts. Partial home renovation or pausing midway can cost you your bargaining power or inflate remodeling costs.

2. Dip Into Your Home Repairs Account

As a rule, you should create a replacement reserves account when buying a new home. This is because your home wears out with time and you’ll need to do some repairs. Having reserves can ensure you have a financing option when any element breaks down.

Create a separate account and label it home repairs and replacement account. Make sure you save some money every month for emergency repairs and renovations. Experts recommend saving 1-3% of the total home value every year for maintenance and repairs.

If you have this account, you can avoid dipping into your savings or emergency account. Home renovation is sometimes an emergency. But it can leave you in financial limbo if you touch your savings.

3. Home Renovation Loans

Home renovation loans can be a great source of finance for your home improvement project. You can apply it for a simple home remodel and for larger renovation projects.

A home renovation loan is usually a far much better option than a home equity loan. It has a lower interest rate. And if you’re securing it with Plenti, you can enjoy a personalized rate based on your credit history.

Borrowing amounts are also flexible to your needs. With options like Plenti, you can borrow up to $50,000 and you’re allowed a repayment period of up to 7 years. Imagine finding the money you needed for all your remodeling ideas and repaying at your pace.

A home renovation loan is a great option when you can’t refinance your home loan or want a flexible repayment period. The amount you’re eligible to borrow can go high as the post-renovation value of your old home.

4. Cash-Out Refinancing

Cash-out refinancing is another good option to fund your remodeling ideas. It means acquiring a new larger mortgage to replace the existing one. You end up getting some cash out of the difference between the two mortgages.

Cash-out refinancing is best if you’ve stayed in the home for several years. Repaying allows you to build some equity that you can turn into cash and use for your projects.

A cash-out refinance does come with costs that can add up to a few thousand dollars. You have to pay closing costs, appraisal costs and application fees. The option also comes with interests on cash received plus interest on the mortgage.

The amount received is likely to be much less than from home renovation loans. This is because the lender might limit the amount to around 80% of your home’s value.

You have to take into account prevailing mortgage interest rates when taking cash-out. Higher interest rates can make your loan expensive. Lower rates can allow you to enjoy a cheaper mortgage and smaller monthly installments.

5. Home Equity Line of Credit

A home equity line of credit or HELOC is a second mortgage like a credit card. It allows you to borrow against your home’s equity. You can borrow small amounts until you exhaust your equity or use it for a large sum of credit.

If you’re doing your renovations in phases, a HELOC may be the best option to finance your home renovation. You can borrow an amount you need to complete a phase then wait until the next stage is due.

HELOCs are less expensive compared to traditional credit cards. But the lender can adjust interests which means you need to track your loan. Your home is the security for the loan so the lender can take your property if you don’t pay as agreed.

6. Apply for Home Equity Loan

If you want a large sum of money against your home’s equity, apply for a home equity loan. The lenders give you all the requested amounts at once. You repay on a fixed interest rate and fixed period.

This loan, like HELOC, uses your property as security. Meaning, the lender can foreclose on you if you default on the loan.

If you want to finance a large home remodeling project, this is one of the best options. You can enjoy efficient cash flow to maintain renovations.

7. Home Renovation Construction Loans

You may want to take a construction loan if you’re doing major renovations or building a new home. The loan is a great backup when you’re using savings or lack equity to access other credit options.

A construction loan boosts your borrowing potential. The bank can finance you based on the future remodeled home. This allows you to borrow an amount adequate to complete your project.

Some loan requirements can vary depending on the lender. For example, some lenders can give out the loan in the form of installments. The lender releases installments at various stages of construction.

Looking for Money to Finance a Home Renovation Project?

Trying to finance a home renovation can be a challenge even when you have savings. Using cash drains your savings and leaves you vulnerable to financial risks.

One of the best methods to finance a home remodeling project is to take an affordable loan. A good loan allows you to plan for payments due to its low interest rates and longer repayment periods. For more advice on home loans and renovation, check out the rest of our blog.

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home renovation

Continuing Home Renovations During the COVID-19

July 14, 2020

Most home renovations have been halted due to the global crisis, even the the most organized and best-laid plans are on hold – and this might include your home renovation projects. Perhaps, your home was in mid-renovation when COVID-19 hit and stay-at-home measures were declared by the government.

Now that the government is enabling a few projects to re-start again, it pays to still be safe. If you are planning to resume renovations, real estate development professionals and home renovators recommend keeping the following in mind:

Proper Hygiene and Sanitation

All workers on the site should wash their hands for at least 20 seconds. Install handwashing stations at each corner of the renovation site so that running water is available for all the workers. Also, provide them with hand sanitizer and/or alcohol.

Personal Protective Equipment (PPE)

Masks, in accordance with the Department of Health’s guidelines, must be work at all times by all workers. Workers can use cloth coverings depending on their job. They must also use eye protection and gloves. The type of gloves used depends on the task being completed. If the task to be finished doesn’t need gloves, workers can use latex or nitrile gloves.

Build a Temporary Plastic Wall

Restricting airflow is one of the best ways to keep dust (aka the real enemy) away from your home. Don’t settle for loose plastic curtains; create airtight barriers made from plastic and seal them with tape. You can also use a heavy plastic with an adhesive-backed zipper for easy exit and entry when the project resumes.

Social Distancing

Workers on the site must maintain at least six feet of distance at all times. If they can’t perform social distancing, they increase the risk of transmission. You might have to reduce the number of workers reporting to the site if this is the case.

Also, a COVID-19 safety supervisor should be present to ensure everyone is practicing social distancing and proper safety precautions.

Close Air Vents and Replace the Filters

Maintain air quality by getting a handle on the workings of your cooling and heating system. If your renovation area has return vents, shut down the system in favor of portable air-conditioning units and heaters to prevent transferring dust and debris in the area. Otherwise, keep your area’s air vents closed and replace your filters regularly to keep the clean air flowing.

Other Things to Consider during Home renovations at this time…

See your contractor’s COVID-19 plan. Make sure that the workers follow the plan and are aware of the protocols. Most professional contractors already have safety protocols even before the pandemic.

If you are planning a new project, clear it with the local government first to ensure that you have the permit to start a new renovation.

Continuing your home renovations during COVID-19 is possible – as long as you maintain and practice safety protocols. Work closely with your contractor to ensure all workers follow safety measures and still keep your project deadlines on time. Maintain regular communication too so that you are always in the know on your project’s development.

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home renovation

Renovating your townhouse

May 6, 2020

Have you been considering renovating your townhouse? Maybe you’ve already started but want to know what to do next? In this article, we are going to talk about everything you need to know about starting your home renovations.

Form a budget:

One of the very first things you’ll need to consider before beginning your renovations is the budget. Renovation costs can be expensive, and you’ll want to set yourself a guideline for each area and how much you can spend. For example, set aside a budget number for décor, painting, expansions, labor costs etc. Starting a project with a budget will ensure that you don’t overspend.

Consider hiring an architect:

If you’re looking at expanding or changing the layout of your home, you might want to consider hiring an architect. There are many different types of architect services, all of which can help with your plans. Some of these include drafting, knockdown projects, restorations and additions. They can also provide you with renovation ideas to get your house looking its best.

Find out if you need approval:

In most countries, permission and approval are required for particular renovations. If you are extending or making significant layout changes to your home, chances are you will need permission from a council. An architect can help ensure that everything is in place before you ask permission; however, if you feel confident, you can do this on your own.

Determine what you can do yourself:

If you’re quite handy yourself, you might be able to DIY some of the renovations yourself. This is a great way to save money on your improvements and can include smaller tasks such as painting or patching walls. If you think you can confidently complete some of the jobs, make a list of these things. DIY can help save you money, and you won’t need to hire someone to do it for you.

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HOME DECOR, REAL ESTATE

4 Ways to Save Money When Renovating Your Home

March 10, 2020

Renovating a home is almost always exciting – setting a budget is not! But the costs of a home renovation project of any scale can quickly get out of hand if you don’t have a plan. Many homeowners end up spending more than expected, and that can make an otherwise-satisfying renovation project something of a guilty pleasure.

However, there are some simple ways to keep remodeling costs down without sacrificing anything of value in the process. Keep the following four tips in mind, and you can make your next home renovation project as cost-effective as it is rewarding.

1. Think About the Future

Most homeowners who plan renovation projects spend plenty of time thinking about the options. In quite a few cases, normally level headed people end up getting caught up in transient, trendy design ideas that will not stand the test of time.

That is a common reason for spending too much on renovating a home. If your renovation work starts to feel dated not long after it was completed, you will be more likely to start thinking about yet another costly overhaul.

Focus more on classic, time-tested design approaches and that kind of turnover will become much less of an issue. If you engage Couple Abode for your home renovation project, for instance, you will discover that classic, enduring items and materials can provide just as much immediate gratification as the trendiest ones.

The difference, of course, is that such proven pieces and assets virtually never go out of style. In addition to being less likely to seem outdated after tastes change, classic design elements tend to work better with future updates than trendier ones.

2. Stick to a Strict Budget

There will almost always be dozens of decisions that need to be made when planning a renovation project. Even after having set a budget, it can be tempting to spend a little more here and there along the way.

Unfortunately, that tends to send costs soaring, with each new addition contributing to the problem. Being firm and disciplined about the budget you established is the only realistic way to avoid such problems.

This is not to say that there will never be any room for on-the-fly adjustment. If one renovation option that will add to the tab seems irresistible, simply find a way to pay for it by cutting costs somewhere else.

3. Pay for Everything Up Front

Homeowners often end up paying more for renovation work than they realize, typically because of interest charges and other financing-related costs. Commit to saving the money needed for a renovation job before starting and you can avoid falling into this trap.

Low-rate home equity loans and similar options can make it look as if borrowing to pay for renovation makes good financial sense. Even in such cases, though, it will often be possible to save significant amounts of money by paying cash.

4. Pitch in Yourself

Especially involved, complicated renovation plans can make it seem as if only professionals could handle any of the required work. In just about every case, though, homeowners with a bit of ambition and energy can actually make some valuable progress themselves.

It can take a bit of strategic thinking to figure out where DIY work will pay off. In some cases, simply talking with a contractor will reveal effective ways to keep costs down by pitching in.

A More Affordable Home Renovation Project…

Tips like these can be used to make every dollar devoted to home renovation stretch a bit further. Homeowners who might otherwise be shocked at the costs involved often find that looking for ways to save on renovating work makes a significant difference.

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BATHROOMS, INTERIOR DECORATING TIPS, KITCHENS

Countertops can make a huge difference!

October 28, 2009

Today our granite counter tops arrived!

As I mentioned in my previous blog posting, I am living in a renovation zone but things have picked up and starting to really come together.

This afternoon our granite counter tops (kitchen and bathroom) were installed and I cannot get over the difference! We had laminate counter tops in both rooms, the kitchen counter top was a solid grey which was probably not the best choice as it does not hide stains very well and every scratch is seen from a mile away; the bathroom counter top was a laminate but in aqua, white and peach speckled design. My husband and I were looking for a more modern look but we also love the natural look of granite and stone.

Looking for granite Counter tops….

We went to a few granite showrooms but everything we saw was quite typical, since our cabinetry was so plain we really wanted something special! We actually went to a granite supplier and had the opportunity to peruse their slabs and select ours directly from their supply. We found the perfect counter tops for our home and now that they are in the transformation is truly incredible.

Granite Counter tops made a huge difference….

What difference can a counter top really make? In our case we selected a slab of granite that was lighter in colour from the original laminate and now our open concept kitchen look enormous. Our stone back splash really stands out and the stainless steel accents add some sparkle. The whole kitchen comes together and is a true show stopper! The bathroom renovation was a complete overhaul (bye bye Barbie bathroom) but my husband was really worried about how the white wall tiles, grey floor tiles and blue glass accent tile would all come together – the ‘biano antico’ granite counter top was the key element for bringing all the pieces together.

When it comes to selecting your kitchen counter tops there are no right or wrong

choice but here are some tips:

1 – Colour –

Typically you want to choose a counter top that on the opposite side of the colour wheel from your cabinets, for example a dark espresso stain looks best with a lighter counter top but if you are selecting from granite you have some flexibility because granite has some many colours and fishers that you can choose from a variety of cabinet colours. But light can absolutely work with light but I always like something to ground the room so it could be the floors, paint or backsplash.

2 – Stay away from a single colour laminate.

A solid coloured laminate counter top does not stand the test of time very well, stains and scratches are nearly impossible to hide with this type of counter top. If granite is too pricey, keep in mind that there are many laminate options that look (and can feel) like a granite counter top.

3 – Looking for something different?

Try exotic granite or other natural stone such as marble or soapstone or even more cutting edge – concrete. With the increased popularity of granite certain colours are seen more frequently but there is a lot to choose from, so look around at other options.

Here are the after photos of my bathroom and kitchen :-

I can’t get over how different the house looks with these new counter tops!

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