Did your home look a little bit shabby when you first bought it? Are you putting off updating your home for months, or even years? It may be difficult to know where to start if you are financially unable to make the update. These tips may be of assistance.
Renovations are expensive. It’s important that you use your money well when it comes to renovating, updating, or remodeling your home.
Here are four renovations you should prioritize and four payment options to make sure you get the best bang for your buck.
Renovations that increase value
1. What’s broken?
Protecting your investment should be the first priority in any renovation. It’s time to replace your roof if the roof is leaky and threatens to damage your ceiling, weaken foundation, or cause other costly damage. It’s time for a new roof if your furnace or appliances are not reliable.
Wooden windows in older homes can become brittle and not provide enough insulation. Energy efficient windows will help you save money heating and cooling your home. They may also offer greater protection from Canada’s winters. To keep your home cooler, experts recommend tinted windows for homes that face west.
3. Walls and fixtures
To add value, renovations don’t need to be expensive. Simple wall colour changes can make a big difference to the feel and look of your home. They are also cost-effective. Your home can be modernized by updating light fixtures, door handles and mouldings, as well as trims.
4. Kitchens and bathrooms
The kitchen and bathroom are the most used rooms in a home. These rooms can have a significant impact on the enjoyment and value of your home.
You can save money by changing the kitchen cabinet pulls and facings, rather than re-modelling the entire space. However, most designers agree that renovating your kitchen can be a worthwhile investment if you have the budget.
The RBC House Value Estimator will help you determine the value of your house and what type of renovations could increase it.
There are many ways to finance your renovation
How will you finance your renovation? Your financial options will be influenced by the size and cost of your upgrade. Here are four things to think about.
1. Home equity loans available
A home equity loan is a great option if you have equity in your house. This type of loan, which is secured against your home, often has lower interest rates than unsecured personal loan and higher credit limits. A Home Equity Loan allows you to put the existing value of your property to work for yourself. A Home Equity Loan can be taken out on any property that you own. It doesn’t even have to be the property that you are renovating.
2. Refinance your mortgage
It is possible that your home has appreciated in value if you built it years ago. Refinance your mortgage to get that extra value. You can get cash back if you leave 20% of your equity in your home. This is equivalent to the difference between the current value of your home and the amount you owe on your mortgage.
3. A personal loan might be an option
A personal loan is a good choice if you are financing a small renovation. You can choose a term that suits your project and make payments according the schedule that you prefer.
4. Save your money
Savings can be a great way of paying for renovations. However, not everyone has enough money in their savings to cover a major renovation. You might also not want to drain your emergency fund. You should save some money, but make sure you have enough to cover unexpected expenses.