How to pay for your home improvements
If you’re renovating a property, one of the most important things to think about is how you’ll fund the improvements you want to make. Few of us will have enough saved to cover the full cost of renovation, and if you have spending all of your savings at once might not be right for you.
Your options include waiting until you’ve saved up enough to pay for the home improvements, or you can borrow the money you need.
There are advantages to both options. If you chose to save, you will need to delay the home improvements – how long the delay is depends upon the amount you need to save and how much you can afford to put away each month.
If you borrow the money, whilst you will pay interest you will get the work done – adding value to your home, improving your quality of life and possibly reducing your monthly bills (and saving money on maintenance). The key to borrowing money is to do it responsibly and ensure you do not borrow any amount that will put you under financial pressure.
A second mortgage can be a good way of funding home improvements as it often allows you to borrow more, over a longer term and at a cheaper rate than an unsecond mortgage. This means that the monthly repayments are generally lower and can be offset by any savings you make as a result of the improvements.
Remember, it’s important you are confident that you can afford a second mortgage. If you can’t make the repayments, your house is at risk of repossession, so ensure that it’s affordable before you apply.
Buying a property to renovate
If you enjoy a challenge, buying a property to renovate could be for you. If you find the right property, you can buy, renovate, and then sell for profit. Property renovation involves more risk than spending money on home improvements, however the rewards can be great if you are willing to put in the time and effort.
But a successful renovation project needs careful planning and preparation. Before you even consider starting, do your homework. Make sure you know as much as possible about the neighbourhood the property is in, the condition of your chosen property and have a plan for the work that you will need to do – including a good idea of the amount you will need to spend.
It’s never a good idea to bite off more than you can chew, as you’ll be left struggling with a mountain of work that will not only put strain on you, but also on your finances. If it’s your first renovation project, look for a property that can be renovated quickly and with a level of investment well within your budget.
It’s also important that you find good tradesmen to help with your home renovation. You don’t want to invest time and money only for poor build quality to ruin it. Get a few quotes from different tradesmen and check reviews of their work to find the right one for the job. Sites like www.checkatrade.com have reviews from past customers, giving you the chance to get an honest opinion before you jump straight in. You can also ask for references and photos of previous jobs if these aren’t available online so that you know the standard of work to expect.