How To Win Friends And Influence People with HOME RENOVATION

The burning question on the minds of several Australian homeowners is – am i going to “Renovate” or “Relocate”? So, in case you are one of these property owners, you could have also realised that the high cost of buying a fresh home and selling your current home far outweighs the challenges of renovating your present home. However, you need to only renovate if the renovations will:

>> Add value to your house

>> Result in a better standard of living

>> Be used to perform emergency repairs or full home extensions

Do Lenders/Credit Providers impose Restrictions on the sort of Renovations?

Subject to their credit policies and lending guidelines, most lenders/credit providers enables you to borrow the funds to improve the value of your house for any worthwhile purpose, such as for example if you want to:

>> Add another bedroom, or any other room

>> Renew/update your bathrooms or kitchen

>> Add a pergola and outside recreational area

>> Use a swimming pool

>> Extend your garage from the single garage to a double

>> Construct a secondary dwelling on your own existing property

>> Any other structural or non-structural construction

What Methods of Finance may i choose?

Here are some examples of the popular methods to ensure easy home renovation:

Home Equity Loan – This financing Home builder arrangement is perhaps the most common way for Australians to finance their house renovation projects. A house equity loan works where you borrow the amount of money against the value of your home. To illustrate this I’ve provided the following example:

>> The example assumes your property is worth $700,000, and

>> Your mortgage loan is $300,000

From the example illustrated above, you should have $400,000 equity in your home, which you can use to invest in your renovation project.

The recent rise in-house prices has led to many Australian homeowners having acquired considerable equity within their property, this can make obtaining a home renovation loan easier for these people and reduces their have to dig to their own cash reserves.

UNSECURED LOAN – This financing arrangement is a suitable option for you to consider if:

>> You do not have any equity available in your house, or

>> You only need to complete some minor renovations

By choosing a short-term unsecured loan, you will find that:

1. The personal loan interest is much higher than a house equity loan, and

2. You may be limited by the amount you can borrow (e.g. from $5,000 to $50,000)

Construction Loan – This financing arrangement can be acquired that you should complete large-scale renovation projects that want council approval and the services of a licensed builder. The lender/credit provider will impose the next restrictions when they are thinking about a construction loan for home renovation:

>> The lender/credit provider will not fund the full loan amount upfront for you

>> The lender/credit provider will release the amount of money for you only in stages because the renovation progresses

Can I afford to Re-build my Home if it was destroyed?

You should already have normal home and building insurance set up, but you need to increase your building insurance to cover the expenses associated with your house renovation project. So, if you cannot afford to rebuild your house if it were destroyed by damage from fire, or from any other natural disasters, you should consider the following questions:

>> Are you experiencing building insurance?

>> Assuming you have building insurance in place:

1. Is the amount of protection plans adequate?

2. What does your building insurance coverage cover?

3. Does your insurance coverage include Total Replacement cover or Sum Insured cover?

Don’t Delay and DO SOMETHING Straight Away

So, if you are thinking about renovating your home without any stress, you should talk to a professionally qualified and expert home finance broker who is an expert in home renovation loans and, has helped numerous home owners if they had considered renovating their house.

He/she can arrange finance for the renovation project. Financing broker will provide you with a variety of finance options and products after developing a budget for you. But, remember that you should be clear about your future plans as it will help you in deciding on the best finance option.