If you’ve recently purchased an older property, you’re probably feeling very excited about the renovation process. This is your chance to create your ideal home – not to mention you’re able to restore some of that historic charm.
However, before you start making any changes, it’s important to take a moment and prepare yourself. All home repairs and upgrades have their challenges, and you don’t want to cause any further damage to the already fragile structure.
Below we are going to discuss five rules that you should follow when renovating an older home.
Hire the right professionals.
While you may want to be involved in the construction, there are some things that you can’t DIY. A home service professional has experience working with older homes and can address issues correctly as they arise.
Remember to take your time when searching for contractors. It’s not just about the cost, but also about finding people who are qualified, experienced, and reputable.
This Edmonton flooring installation business is a great place to get started. They offer a range of services to suit your flooring needs.
Preserve the character.
One of the best parts of buying an older home is that they are full of unique character. When renovating, it’s a good idea to preserve this and try to incorporate original features into any new modern elements.
Things such as stained glass, woodwork, and fireplaces are just a few examples of areas that can be enhanced. If you eliminate them completely, it may decrease the value of the property.
Budget for additional costs.
During any home repairs, unexpected costs are bound to arise. With old homes, it’s an even more common occurrence as you can’t often see the issues until you start the upgrades.
You may discover that the wiring needs to be replaced, or that there is hidden pest damage within the walls. Always budget for these in advance and avoid overspending. This way you won’t run out of funds halfway through your project.
Don’t sacrifice quality.
Speaking of costs, while you may want to keep them to a minimum, never sacrifice the quality of your new home. Your renovation should reflect the sturdiness of the property and ensure that it lasts for many years to come.
Avoid using cheap materials and again, pay for experts to complete the work. Trust us when we say, it will make a big difference.
Always consider eco-friendly options.
Lastly, try to look for eco-friendly options as much as possible. Most older properties weren’t built with this in mind which leads to rather high utility bills.
Making a few changes will reduce your carbon footprint and help you save. Things such as low-flow plumbing fixtures, energy-efficient appliances, and eco-friendly insulation are just a few examples to choose from.
Final Words
Renovating can be an enormous challenge, but the hard work will be worth it. By following the rules above you can create a beautiful space that maintains the unique history of the property. Good luck!
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 offinance 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 loanif 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.
Whether you’re renovating a rundown property for yourself to live, or to sell on once your project is complete, it’s essential that you do it right. If you cut corners and don’t make the home a decent place to live, you will not make as much money as you like or live comfortably if you do move into it. A renovation project of this size is a lot to take on, so you must be willing to see it through to the end and be able to afford to make the necessary changes. Here are a few tips to help you plan for this kind of project if this is something you have been considering.
RenovationBudget
You might not have spent a lot of your budget on the property itself when you purchased it, but the surveyor should have been able to give you a good estimate of what all of the work will cost before you finalised a sale. You should also prepare for hidden costs, as often these kinds of projects have unforeseen circumstances that add more to the final bill. Once you know how much you can realistically afford to spend, you can start to think about the most cost-effective materials to use that will still be good quality for the build.
Structural Work
The most important thing to get right when you’re renovating a property is the structural work. If a house has been left empty for an extended period, there is a good chance that it has sustained damage to the roof, windows, brickwork, and possibly the foundations. Again, your surveyor should have included all of this in their report, and you can use that as a reference to what needs to be done to make the property safe to live in. Make sure you’re investing in these areas, as quality structural work is vital.
Interior
Once you know the property is structurally sound, has new windows fitted, etc., you can begin to look at the interior. For things like your bathroom or kitchen, you will need to find a company that specialises in these designs and installation, like granitetransformations.co.uk. You might also want to think about hiring an interior designer if you can, as they will be able to bring your vision for the property to life.
Reliable Team
Even if you’re a builder or a DIY enthusiast, there is no way you can renovate an entire house by yourself! You will need to find a reliable team of contractors, plumbers, electricians, and so on to help you piece together your dream home. If you are planning to make some structural changes to the property, you might need the help of an architect to draw up these plans for you. Take your time to find the right people for the job, get a variety of quotes to compare, and use reviews and recommendations to help you make your decision.
Renovating a property is a big undertaking, but taking the time to plan it properly and with a strong team to work on it, all of the effort will pay off.
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.
