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home renovation

7 Ways to Finance a Home Renovation

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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

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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

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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

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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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REAL ESTATE

10 Signs Your Foundation Is in Need of Repairs

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Residential property owners must follow the necessary steps to prevent foundation damage. Gutters are installed underneath the edges of the roofing to allow rainwater to flow away from the property. The installations lower the risk of foundation flooding. However, gutters aren’t the only fixture that protects the property or affects the foundation. Property owners read through the 10 signs your foundation is in need of repairs and decide if the signs are present in their home.

1. Cracks or Damage in Sheetrock

Cracks and sheetrock damage are clear signs that the foundation is damaged, and moisture from the lower levels of the property have reached the walls. Unfortunately, moisture is a leading cause of mold and mildew that increase respiratory diseases for the homeowner. Property owners hire contractors to investigate the sheetrock damage and find out if there is mold and where it has spread.

If mold is found, the homeowner faces the expense of mold remediation and restoration services. An insurance claim might help the homeowner get the coverage they need to pay for the foundation repairs and mold remediation. Unfortunately, homeowner’s insurance providers aren’t cooperative always when it comes to existing mold. Some policies restrict coverage according to how long the mold and property damage have been present. Property owners must stay on task and discuss issues with their repair service before major catastrophes occur.

2. Cracks in Exterior Walls

Flooding around the foundation is a leading cause for damage in upper levels of the property including the exterior walls. Siding that is disconnected and falling off the outside of the home is a sign that serious damage has traveled upward, and too much moisture is a real problem for the homeowner. The exterior walls are often rotten, too.

If wood rot is present, larger sections of the exterior walls require repairs and could present a more complex repair project for the property owner. Underlying wood rot spreads to surrounding materials, such as the framing. The contractor might have to remove the entire section of the exterior wall to restore the property and prevent the depreciation of its value.

Contractors must remove the siding in the damaged area to find out if more issues are present. Under the circumstances, the homeowner sees large cracks in the exterior walls and bricks that are sticking out from the exterior walls if they have a brick home. Homeowners who find the signs schedule foundation repairs for preventing additional damage to their homes.

3. Obvious Signs of Uneven Floors

Uneven floors are an obvious sign of foundation damage. The floors are starting to give and present a hazard to the homeowner, their family, and anyone who enters their property. Homeowners notice the difference in the floors when spills seem to flow in a downward or opposite direction instead of puddling in one spot of the floor. It could mean that the support is sagging nearby causing an incline in the property, too.

Tripping hazards occur due to uneven flooring, and homeowners are at a greater risk of facing liabilities, such as premises liability or accident claims. Homeowners who entertain guests more frequently increase their risks if they don’t get the flooring repair quickly. An inspection of the foundation helps owners prevent more risks, and they can replace their flooring after the foundation is fixed to prevent new sections of the flooring from becoming damaged.

4. Separation Around Windows and Doors

Separation around windows and doors is caused by foundation damage, too. Homeowners notice that there is a space between the window casing or the door framing when the issue arises. The space offers an entry point for pests and could lead to a serious infestation. If the separation continues without action, the security of the home becomes a major concern, too.

Window and door separation causes irregularities, such as doors failing to close properly and warping window casings. It increases the odds of breaking window glass and potential safety risks for the owner and their family. Cracks in the windows are often visible when separation occurs.

Exterior temperatures enter the property causing the thermostat to detect inaccurate temperatures and engage the heating or cooling system. Property owners see rising energy costs and consumption due to heat transfer and loss. The exterior air comes in through cracks in the walls, too.

5. Signs of Weakened Floors

Bouncy floors are a sign of serious damage that leads to the floor caving in and causing personal injuries. It means the flooring has been compromised and has weakened. It won’t provide adequate support for the homeowner or their family. Property owners who notice a bounce in their step when walking across their floors need to take immediate action and replace their flooring. Foundation damage is often the cause of flooring damage due to moisture and dampness.

Homeowners should take note of all sections of the flooring where it is bouncy and tell their repair service provider. They should move around their furniture and find out if there are weakened flooring sections underneath heavier than average furnishings, too. If the flooring is weak underneath the couch or an entertainment center, the furnishings could cave through the floor without warning.

6. Cracks in Tiling

Tiling lifts from the flooring when moisture is present in lower levels of the property. Homeowners notice chips and sudden breaks in their tile floors when moisture builds underneath each section. The tiles disconnect from the subflooring when the wood is rotten or damaged. Homeowners must replace the entire subflooring along with the tiles under the circumstances.

Ceramic tile starts to chip and break as it is lifted off the flooring. It can chip and break into powder presenting a financial loss to the property owner. Acting quickly could present the owner from facing the expense of replacing each individual tile.

7. Nails Popping Out of Drywall Consistently

Nails popping out of drywall consistently are a sign of wet sheetrock. Moisture has built up behind the walls and is causing the drywall to stay damp, and it is no longer supporting the nails. Nails won’t stay anchored into the sheetrock if it is wet, and some might fall out of the sheetrock entirely. Homeowners need a complete inspection of the affected wall to determine if the framing and all the drywall is wet.

The cost of moisture removal is high, too. Service providers use dehumidifiers whenever possible to draw the moisture out of the walls and prevent more damage. Sections of drywall are often replaced due to moisture.

8. Expansion Joint Separation

Contractors install expansion joints to prevent structural instabilities due to land shifts, increasing humidity levels, and consistent changes in the temperature. Foundation damage causes structural instability and the expansion joint isn’t able to compensate for the sudden change. The joint fails, and the portion of the property where the joint was installed begins to crack. Sudden cracks could lead to complete separation of the walls leading to framing and roofing instability causing the entire property to become structurally unsound.

9. Signs of Rotten Wood

Foundation damage causes moisture to spread throughout the property. Most residential properties have wooden supports and framing. Wood rot is a serious risk to the property and could create a total loss for the owner.

Wood rot could also present a food source for termites and cause a major termite infestation underneath the home. Termites are a major risk to residential properties. The insects destroy wooden framing and support, and the termites could multiple and build colonies quickly with a dedicated food source nearby.

Under the circumstances, the owner will have to spend more money exterminating the termites and cutting the colonies off from food sources. The services are necessary before the homeowner starts any repairs. After the insects are gone, the property owner faces the expense of replacing all wood that rotted due to the foundation damage.

10. Signs of Wall Separation

Wall separation is the greatest risk to a residential property and is caused by foundation issues. If the homeowner notices wall separation, major construction and repair services are needed to correct the damage. It means the walls are rotten, the framing is damaged, and the sheetrock inside the home must be replaced.

It also presents the possibility of electrical issues if an outlet was installed within the section of the wall. In addition to tracing the cause of the wall separation, the homeowner must make sure that the electrical connections weren’t disturbed. Frayed wiring could cause an electrical fire and the total destruction of the property.

The foundation of the home is a vital part of the overall home design. It keeps the property structurally sound and stable. If the foundation cracks the property shifts and presents a major risk to the owners as well as a potential financial loss. Knowing the signs of foundation damage helps property owners lower the changes of surrounding damage, such as rotten wood, broken support beams, and flooring instability. Acting quickly and scheduling repairs protects the home and restores property values.


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REAL ESTATE

Things to consider when adding an extension to your property

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Sometimes we outgrow our homes. A great way to get the home you need without moving is to add an extension. If you are considering this, there are a few things you need to give thought to before going ahead.  

How much extra space do you need?

There is no point in building an extension then finding out you miscalculated and could have benefited from even more space. That’s why it is so important that you carefully consider how much space you need before you start. It is also important to give thought as to how the space will be used and by whom. Make sure your proposals tick every feasible box.

 Who will carry out the work?

Whether it’s a loft conversion, a kitchen extension or a garden room, you need to get the right people for the job. Hiring trade specialists will ensure things go to plan. Many companies can coordinate more than one trade making the process even smoother. Captain Electric, for example, can not only carry out your electrical needs but can undertake all your plumbing needs too. The fewer trades you have to deal with, the easier it will be in the long run.

How much can you spend?

Budget is one of the main factors when considering the size and specification of your proposed extension. Whilst you may want a huge double storey addition, your budget may only allow for a small single storey. You need to be realistic. Get some draft plans drawn up together with some rough quotes. This will allow you to focus on what is feasible rather than what you are dreaming of. They may not be the same! 

Be prepared

Whether it’s a percentage of your proposed costs or a set figure, having a contingency is always recommended. Timescales can extend, materials can change and labor costs can increase. A contingency ensures that if anything doesn’t go to plan, you have the financial means to deal with it. You don’t want a scenario where you have an unfinished build because you have run out of money.

Getting approval

Once your draft plans are drawn up, you will need to contact the relevant authorities for permission to proceed. They will look over plans and details and ensure that these conform with current building regulations. Don’t allow any works to be started without these. The last thing you want is to have to pay your builder to remove what they have already done.

The finishing touches

Once your extension is complete, you will want to add some color and finishing touches to your project. Consider in advance the color schemes which would go well in your newly created space. Flooring, wallpaper, window coverings and paint all need to be chosen so make sure you allocate a good amount of time to make these decisions. Once it’s complete and your final items added, all you have to do is sit back, relax and enjoy your extra space.

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HOME STAGING

Selling Your Home? 9 Tips to Increase the Value of Your Home

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If you are considering selling your home in the near future – start prepping now! Don’t leave it to the last minute….to get your home in tip top shape that buyers are looking for – is a lot of work! It really is best to get a head start so that there isn’t as much to do closer to the time when you want to list your property.

It can be confusing to know where to spend you money, time and energy but here are the top tips to increase to value of your home

1 – Fix ALL repairs.

Not sure what’s wrong with your home? Perhaps hire a home inspector to inspect your home and take a look at his report.  Leaky pipes, the roof, electrical panels etc…are the types of repairs that scare of buyers.  But be sure to take acre of cosmetic repairs too like cracked tiles.

2 – Add a fresh coat of paint.

It’s worth it.  The cost of pain is minimal and it makes every space look clean and bright.  Stick to neutrals and a white trim

3 – Replace carpet.

If you have old wall to wall carpet remove it.  Carpet is a big turn off for a lot of buyers as it get dusty and an old carpet doesn’t usually show well.  Opt for hardwood or laminate (perfect for a family home).  This improvement is what most buyers are looking for and it improves the quality of the air and it’s low maintenance

4 – Low maintenance landscaping.

Add some plants and perhaps some shrubs/trees.  It improves the curb appeal and again, it is something that the buyer won’t have to do.  If you want top dollar for your home, you need to do the work! Plus pull out that patio furniture (make sure to clean it) and set the scene –

5 – Enhance those kitchens and bathrooms.

You don’t need a total overhaul necessarily but pay attention to updating the bathroom.  Make sure it’s clean, has white fixtures like tuns, toilets and sinks and chrome or brushed nickel accents.  A simple and neutral bathroom always presents better than a dated one.  for the kitchen, small updates like a new back splash in a neutral tile, updated hardware and lighting – make a huge differences.  If you have older appliances that you can’t afford to replace make sure they are in good working condition and clean

6 – Other upgrades.

Lighting is huge – look for simple chrome or brushed nickel finishes.  And make sure you are using maximum wattage so the home looks bright! If you can upgrade your cabinets- do it, remember light and neutral, you want mass appeal.

7 – Don’t forget the exterior.

Does your front door need a fresh coat of paint? How about those lights and mailbox, have they seen better days? Do you have an address plate? Does your grip set (door handle and key slot) work smoothly? – Don’t let real estate agents get frustrated by trying to enter your home for showings, not a good first impression!

8 – Let there be light!

Are there dark rooms in your home? Consider hiring an electrician to add some overhead lighting in darker rooms. In older homes, we don’t often see overhead lighting in family rooms, secondary bedrooms and living rooms – so stand out from the crowd.

9 – Stage your home.

Even if you are still living in the space with your furniture and accessories, hire a stager for a consultation.  They can help you will ideas to be present your home, and they can give you some great tips to appeal to buyers. A home staging team can help you in the beginning too – buy selecting the right paint colours, lighting, hardware and other updates to improve the look and value of your home.  they are a great resource for knowing what’s trending in the eyes of the buyer.

You want your home to look it’s best especially when it is up for sale.  Start the process of prepping your home for the real sale market in advance to save your self some time, energy and stick to a budget.

 

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