Building Wealth with a Home Renovation Loan
What are your current personal finance goals? To build a solid, significant savings account – the next question is, how much is enough? Or even establish an emergency fund? Perhaps a holiday abroad? Applying for car finance for a timely vehicle upgrade? Is it time to tackle debt and assess the range of options for debt consolidation NZ wide? Now while the first two decisions refer to building wealth and improving a savings total, the remainder covers the undertaking of a ‘buy now, pay later’ approach which fits the bill with many in today’s society. The problem here, lies in the fact that we get what we want now, however, we are then faced with the repayments over a prolonged period of time. This can cause issues if we are not careful and plan appropriately. For more on steps to repay your loan faster check out 4 Tactics to repay your personal loan on your terms.
What about home improvement? Have you considered applying for a home improvement loan? If successful and when used correctly, not only are you improving your living conditions at your home, but you are also making a wise investment, as DIY, home renovation, home improvement, construction loans, whatever we want to label it can add value to your property. Serious value. DIY is an investment. And as with any investment, we want to see our money grow and work for us!
Are you in the market for home renovation? Looking to modernise your kitchen, upgrade your bathroom, a new bathroom, outdoor deck, a garage or simply aiming to preserve any general wear and tear? Then read on to check out some pointers on what a home renovation loan can do for you and how you can get the best bang for your buck.
First question; DIY – Yes/No?
Now, us kiwis love to get stuck in with some DIY. However, home maintenance and any renovation that comes with it does not come cheap. And more importantly, many DIY tasks cannot be completed without consent requirements, health and safety needs as well as the proper tools and machinery for the job. The decision has to be weighed up whether or not DIY is the best way to tackle the task – you want to ensure a good proper job is completed while also being mindful of mounting costs.
It would be suggested to check out the New Zealand Government regulations and guidelines for home renovations before you put hammer to nail and make a start to your renovation project.
Another first question – How much is my space worth?
The purpose of getting a home renovation loan is to improve the standard of your home as well as increasing the value of your property. Remember, home ownership is an investment. And we need to determine the starting value of our property; before we undertake renovations, big or small. Check out QV for a valuation of your space – it gives us a quantifiable point to work from.
Think of it, like a goal to lose weight. You wouldn’t configure a weight-loss regime; workout plan and nutrition guidelines, then jump right into the programme without first determining your starting weight, right? It gives us a baseline from which we can then see and experience our improvements.
How much spend should I dedicate toward home renovation?
It would be advised to accurately plan your renovation desires and ambitions – whether you are undertaking the project yourself or getting a professional involved. Perhaps then gauge quotes from the experts and like any major financial decision. Do your homework and shop around to work out the best deal for your project.
Once costs have been estimated, determine how you will fund your renovation project. If you have the cash reserves to accommodate your lofty plans, great news. If however you do need assistance to achieve your renovation plans then do not hesitate to apply for a renovation loan. Make the step today so that you can begin your project to achieve the kitchen/bathroom/bedroom/outdoor area/garage of your dreams. And remember home renovation is an investment – you are building wealth for one of your greatest assets, your home.
Some quick tips to build wealth for your home
Whether you are looking to sell your home or simply improve the value of your current dwelling consider the following fixes
- Develop another bedroom – more bedrooms are certainly more appealing for families looking for extra space. Regardless of family-situations, additional rooms create more options for residents which will add value to your property
- Street view facelift – first impressions count right, so give your property a good lick of paint, tidy up the section, repair the fence, mow the lawns – all factors which give greater street appeal
- Modernise your kitchen – we spend a lot of time in the kitchen so it pays to invest in your kitchen. A tidy, modern kitchen can make or break the sale of your home to potential buyers (if you’re looking to sell)
- Upgrade a bathroom or add a second one – Similar to our points on bedroom and kitchen. Another bathroom appeals to families (or anyone) as greater options are presented. Likewise, a modern look and feel to a bathroom is a massive deal-maker
- General cleanliness – de-clutter, clean the carpets, clean the interior and exterior of your property. Whether you are considering selling your property or not a clean property makes your home that much more appealing.