If you’ve been wondering how to fund your next home renovation project, you’re not alone – nearly half of all homeowners who plan to do home renovations struggle with how to pay for them, according to a recent CNBC article on why home remodeling will cost you more.
Around 57% opt to pay for renovation projects using cash or debit, and 27% with a credit card, others opt to be more creative so as to get money to create an appealing home.
Whether you’re planning to renovate your kitchen under a tight budget, redecorate your bathrooms or give your living room a new modern look, here are some smart funding tips that might help you turn your renovation plans into reality.
Home Mortgage Refinancing
Refinancing is perhaps one of the best ways to fund your renovation project. You can do this by taking out a new loan or extending your current mortgage loan. The refinancing option gives you the opportunity to get a better and more affordable deal with lower interest rates or better loan features.
In a recent chat with homedecorbuzz, professional from Crediful.com explains that, while there are other options like taking out a home equity loan, refinancing your home is one of the easiest ways to stash away extra cash each month to fund your home renovations.
It’s a big decision going the home mortgage refinancing path, so you’ll want to consider the costs of the refinancing to determine if it’s worth it in the long run.
With homeowners dishing out more money every year on home improvements, you’ll also need to consider the overall cost of your planned home renovation, so you can have an idea of the funds you need to make your dream a reality, according to Consumer Housing Trends Report 2017 by the Zillow Group.
Think of Crowdsourcing Options
Crowdsourcing has allowed many people to accomplish their goals with the assistance of the larger community. If you’re short on cash for your renovation project, it’s time you consider some crowdsourcing options.
If the conventional funding route doesn’t sound right for you, the good old way of tapping into family funds or requesting some close friends to help you raise some cash could be a viable option.
While it’s considered a bad idea to use crowdfunding to raise cash for personal plans like home renovations, sometimes it could be a smart option. Just make sure to know the ins and outs of borrowing money from family and friends. This method works best, particularly if you’re getting married. You could ask your close and extended family, or even friends to help you fund your remodeling project as a wedding gift.
Find Creative Ways to Earn More Money
While it may not be the best idea for some, having a side business that earns you extra cash aside from your regular day job could help you save enough money to fund your next renovation project. There are numerous ways you can get creative with earning extra cash.
If you have an extra room in your home, you can rent it out to a roommate or even travelers a few times a month. Have an extra packing spot in your driveway? Depending on your neighborhood, some people may be willing to pay for that empty parking spot. The same goes for empty spaces like sheds.
Despite homeowners having to deal with high renovation costs, the industry is expected to remain strong over the coming years. As rising home values continue to encourage homeowners to invest more in their homes, the buck stops with homeowners to find the best ways to fund their renovation projects.
