More and more of us are wanting more space or the latest improvements when it comes to our home these days. In many cases they will save or earn us money in the long run.
An extension will undoubtedly add value to a home, as will solar panels or state-of-the-art insulation. In the latter’s case, you’ll also save plenty on your bills. The problem is often funding those in the first place though.
For most of us, having a mortgage can be scary enough without the idea of putting thousands more into home improvements.
In North America, and particularly Canada, fixing up the kitchen is one of the best ways to sell a house, with a renovated place to cook potentially adding an extra 12.5% to the value of a home.
That can be a significant investment, with a recent study also finding that people in the country are willing to invest around $15,000 in improvements for a home if they’re looking to sell.
Naturally, that’s a figure that many simply don’t have the income to spend. However, there are ways around this and ultimately, dependent on your improvement of course, adding to your home will see a return of investment. There are a number of ways to fund a home improvement, the most common being a loan or credit card.
Obviously, this isn’t for everyone. We all have different financial footprints and a further loan on top of a mortgage may not be possible for someone with bad credit. There are ways around it though. A number of credit card companies across North America will offer products for people with bad credit.
You can find the best credit cards for bad credit Canada has to offer in a number of places online and they can often be enough to help fund that next step in improving your home. It’s a route many take these days and should your home sell quickly, you may not have to see much interest put on it.
Alternatively, for those with good credit, there’s also the option to place improvements on a 0% purchase card, which will give you an interest free period to pay off as much as you can.
Interestingly, it’s a method that many people don’t use, but even if you have the cash available to pay for improvements straight up a credit card is worth bearing in mind, even if you pay it off immediately.
That’s due to the Consumer Credit Protection Act, in which you’ll be covered should any of the work you have done go wrong. It’ll protect your purchase and make it easier to claim back what you’d spent on the improvements.
Of course, your work may end up being far more costly than what a credit card can cover. Another common solution is to query a further advance from your mortgage lender, or even remortgage the property, particularly if you’re coming towards the end of your mortgage payments anyway.
This will free up the money for the improvements, and allow you to get the work done.
Loaning money can often be a scary prospect when it comes to making improvements. We’re often tied into thinking we’ll stick with what we have. But it really doesn’t have to be the case.
In fact, if you’re looking to perhaps sell up in the few years following the improvements, you’ll likely see a tidy return on what you spent, with the cost of your home increasing dramatically in value.
More and more buyers are now looking for a home to move into that needs little work doing. With the way the financial climate is, first time buyers in particularly are looking for something ready made, avoiding the need to spend thousands upon thousands before even bedding down for a night in there.
Therefore, it’s generally accepted that a home improvement is something well worth investing in, whether you’re looking to move out or not. Stay in your home and you’ve got a nicely refurbished home. Sell up and you’ll see return of investment and significantly more interest in your property. It really is a win win.
Comments(0)