Home renovations can be expensive, so make sure you focus on making visible improvements instead of buying new appliances or doors. Focus on the exterior first, because this is where you will see the most change, and it is the most expensive part of a renovation. Increasing your home’s value will add up quickly, so be sure to prioritize what you need before buying something you want. This article will give you some tips on how to make the most out of your money and make home improvements that will increase its value.
Cost-effective home improvement projects
While it’s exciting to update your kitchen, bathrooms, and other areas of your home, it’s important to realize that these projects can be expensive, especially if you don’t budget adequately. Financial planner Bob Harkson, who recently completed a major kitchen renovation, has seen clients who underestimated the cost of these projects. Often, these projects turn out to be more costly and time-consuming than anticipated.
Although you might not see a $10,000 value increase in one project, investing in home improvements is a great way to add value to your home and boost its comfort. If you’re looking to sell your home in the future, a simple bathroom remodel could boost its value significantly. This could include replacing the toilet and updating the showerhead. Replacing worn carpet with hardwood flooring can save you a significant amount of money. Make sure that the bedroom carpet is also cleaned.
Covering costs with a personal loan
If you want to make some improvements to your home, but you are on a budget, applying for a personal loan can help you meet your goals. Personal loans are quick and convenient, so you can get approved in as little as a few days. In contrast, banks and credit unions can take a week or more to process your application. That is why it is imperative to understand the process and borrow at the lowest interest rate possible.
While emergency savings are the best option for any home improvement project, personal loans can be a great option if you are pressed for time or money. Personal loans are best used for urgent needs, but be sure to do your research. If you have good credit and are willing to pay a lower interest rate, you could save yourself a lot of money in the long run.
Prioritising ‘need’ over ‘want’
When it comes to home improvement, it’s always wise to prioritize ‘need’ over ‘wanted’, and this means putting safety concerns first. By prioritising what you truly need versus what you want, you can more accurately estimate how much each project will cost. Additionally, if you’re improving your home on a budget, putting safety concerns at the top of your list will also help you plan your budget by giving you a clear picture of what you really need to improve.
Creating a budget for home improvements is an excellent way to distinguish ‘needs’ from ‘wants’. Setting a budget is a great way to keep the cost of base improvements down, while still funding fun upgrades. And while it’s tempting to spend the money on things you want, remember to stick to it – your budget won’t be the same forever!
