Renovations and Extensions
There are plenty of good reasons for choosing to renovate rather than move. For most people, the high cost of purchasing a new home outweighs the challenges of renovating.
Recent big house price rises also means many home owners have considerable equity in their property. This can make getting a renovation loan easier and reduces the risk of overcapitalising.
Home Improvements Loans
Home improvements have once again increased in popularity as people figure out that improving their existing home is a far more economical option to selling the old one and buying another one.
After all, if you decide to sell your home, you have high agent’s fees eating into your profits and buying a new one means more stamp duty, moving costs and the hassle of shifting to a new home.
The associated expenses of selling and buying means you may have lost any of the benefits you gained from moving in the first place.
This is where home improvements can be a better option.
Why Bother With Home Improvements
Many families simply out-grow smaller homes. They might need more bedrooms, bigger living areas, another bathroom, a pool, a pergola or a more modern kitchen. It sounds easier to just think about buying a different house.
What many people forget is that the cost of renovating your existing house can often be a lot cheaper than they think. In many cases it is possible to improve the value of your home by a far greater amount of money than it just cost you to renovate, so instead of losing money by selling and buying, you’ve created more equity by renovating.
Affording Your Home Improvements
Renovating your home can be an excellent way to increase its overall value and give your home a new, fresh look. Of course, not everyone has the amount of money available for a major renovation.
Banks are willing to assist people wanting to complete home improvements. Your own financing options will be based on your personal financial situation and the amount of equity you already have in your home. Some banks may even be willing to consider the amount of equity you’re likely to create as a result of your renovation.
Applying for Home Improvement Loans
While it’s possible to just walk up to your nearest bank branch and ask them for more money, it’s important to remember that not all banks view renovations the same way.
For example, some banks may view really major home improvements to be a form of construction loan, while other banks may simply extend a line of credit to you based on your existing equity.
How do you know which is the right loan option to complete your renovations properly?
Working through your options and understanding the complexities behind home improvement loans with a professional mortgage broker who is already trained to know exactly how to structure your proposal is to your advantage.
If you’re considering renovating or home improvements, call an Origin Finance Mortgage Broker today to discuss what options could potentially be saving you time and money.
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