Previously we posted ways to get a new roof on a budget. Now let’s talk about redesigning or remodeling your home on a budget. How can you finance your home redesign on a budget?
We have been homeowners for the last 6 years. We are right now replacing our roof and in another couple of years, we will remodel our home. Remodeling not only makes the home better, but it can also increase the home value.
A home redesign can cost quite a lot of money so it only makes sense to do some financial planning before you begin the project. If you’re struggling to do the finance part, here are some tips to help you out.
1. Do your research
What project are you planning to undertake? Do you want to install built-in bookshelves? Add more counter space to your kitchen?
Or build a backyard patio? Whatever it may be, it’s important to do your research.
Find out the average cost of such a project; you’ll also want to look into the labor costs in your area.
These are some items you’ll want to take into account when setting up a budget.
2. Set a budget
The great thing about doing research ahead of time is that now you have a number in mind.
You may have thought the redesign was expensive but by being aware of the specific items and hours it will take, you realize, this project is achievable.
You don’t want to end up with a halfway done project so as much as possible, you want to over budget.
This is so you are prepared in case an unexpected expense comes up.
3. Don’t cheap out on labor and materials
In line with setting up a budget, you want to make sure that the money you spend goes towards quality materials and good labor.
You don’t want to cheap out on these aspects otherwise, you end up with poor quality work that will need to be fixed later in the future –more expenses for you. This is why it pays to do research.
You will know what materials are durable so you can include that in your budget.
You’ll also have a good idea of what reasonable costs are for good labor so you neither underpay nor overpay for services.
4. Sell your old stuff
Do an inventory of your home and find items of value that you can sell.
Maybe that rattan chair doesn’t fit your living room anymore or you have a baking set that you rarely use.
Go ahead and sell these items on places like a Facebook marketplace, eBay, and Craigslist.
People are always looking for a deal on home goods and you’ll be able to sell your old items for a good price, which you can then divert towards your home redesign budget.
5. Get a loan
There are several ways to acquire a loan. You can get a zero-interest credit card, home equity loan, a home equity line of credit, an FHA-insured loan, a reverse mortgage, and even a personal loan.
What’s important here is that you have a good credit rating. If you have a poor credit history, you may not be able to borrow the full amount that you need.
Be honest about your financial situation and only go for lending options whose terms you know you can fulfill.
If you end up not paying on time, it could affect your credit rating, which in turn impacts your lending options in the future.
6. Look for installment plans on furniture
Does your project require big-ticket items? If so, you may want to consider installment plans.
There are plenty of home good stores now that offer payment plans for their products. For example, if you need new bedding for your bedroom, you can easily finance your mattress.
Just like getting a loan, the merchant will look into your credit history to ensure that you are a good borrower.
This is a great option especially if it’s just a minor project that requires replacing some items in your home.
7. Save up for it
This may not be the most appealing option but if you have patience, it can save you a lot of money in the long run.
Sure, it takes time to save up that amount you need for the redesign but in return, you avoid paying interest rates.
You can even get a discount for buying furniture and appliances in full cash.
What steps are you currently taking to fund your home redesign? Share your thoughts in the comments below.