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Blog   »   April 2015   »   Renovating Your Home

Renovating Your Home

Home Renovation

Have the wave of home improvement shows on television inspired you to carry out some renovation?

Whether it’s big or small, an investment project, or home extension you’ve been dreaming about for years, the big question is – how are you going to pay for it?

Finance Options

Extend or refinance your mortgage: If you’re planning an extensive renovation, one of the most common ways to finance your project is to increase your current mortgage. This can be advantageous as you spread the cost out over a long period and generally at a very low interest rate.

Personal loan: A simple and cost-effective option for financing smaller scale renovations. The interest rates on personal loans are generally higher than home loans and the loan term is generally limited to around 5 – 7 years. They typically have a fixed interest rate that stays the same for the full term of the loan which can be useful for budgeting, but the catch is you can’t usually make additional repayments to get ahead and reduce costs. Lenders may also request real estate security when looking to borrow over $20,000 so in that instance it may be more beneficial to look at refinancing your mortgage at a much better interest rate.

Credit card: A convenient and flexible option if you already have a card with a high enough credit limit. However, it might be costly if you don’t pay the debt within the interest free period.

Home equity loan or line of credit: These products enable you to use your home as security for additional borrowing. This allows you to borrow money at a lower interest rate compared to a personal loan or credit card and can usually be drawn up to the approved limit at any time.

The extent and cost of the proposed renovation will influence the most appropriate financing option, so speak to the experts at Hunter Business Finance to determine which option may be best for your project.

Avoid a Budget Blowout

Setting a budget is essential for successful renovation. Research your costs thoroughly and review your budget weekly to ensure you stay on track.

A great way to save money on your renovation is to consider DIY on non-structural things like painting and landscaping.

Small Scale Options

If the thought of completing a major renovation project seems a little daunting, there are many other smaller options you could consider which have the potential to increase the value of your property. Some of these options include:

  • Changing wall colours and updating light fittings
  • Landscaping and a general tidy up of the yard or overgrown gardens
  • Rejuvenation of existing bathroom tiles and replacing shower screens and fittings
  • New kitchen bench tops or installing a completely new kitchen and appliances

Small changes can be much more affordable but have the potential to create just as big an impact to your property value as larger scale alterations.

So whether it’s a new coat of paint or a complete knock-down-rebuild, the team at Hunter Business Finance can help you get the funds to make it happen. Call us today on 1300 137 656.

Posted: 7/04/2015 1:09:35 PM by Hunter Business Finance | with 2 comments

Comments

Thank you for your feedback Mary and for subscribing to our blog, it is greatly appreciated.
Hunter Business Finance , 23/05/2017 9:32:15 AM
You are definitely right! I agree that setting a budget is essential for successful renovation.If you have more articles regarding this please do suggest more. I already subscribed to your blog.
Mary Del Rosario, 23/05/2017 12:27:46 AM



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