The home that you buy isn’t necessarily the home that you want. You may need to settle for an old kitchen and modernise it later, or buy a home with an overgrown garden which needs tackling during the summer months. Home improvements are very common and in some cases make the home into a great investment as they tend to increase in price but, before you embark on a crazy renovation, there are some things you should ask yourself to make sure that you’re ready for the journey ahead.
How will I pay for this project?
Whenever you face a huge expense, you must always have a plan in place for how you are going to pay for it. There are several options when it comes to a home renovation project, such as using your savings as a way to avoid debt. But you must make sure that you are not damaging your emergency fund in the process. If you don’t have the money available for your project, then you can get the funds you need by using a home equity loan, which you can use to borrow against your home and is a relatively cheap and easy option.
What should I spend more on?
A home renovation is a particularly pricey project to undertake, but naturally, there will be areas of your home which you want to spend a little more on. If you’re a passionate cook or baker, then having a good kitchen is likely to be at the top of your priority list, whereas if you’re a keen gardener you’re probably desperate to get your hands into your new green space. Identifying the areas where you want to spend a little more is important early on as you can adjust your budget accordingly and then look for items which you want to invest in, such as luxury garden furniture, a garden corner sofa or an Aga.
Will I get my money back?
Some home renovations are much more likely to deliver a return on your investment that others. For example, it makes more sense to use your money for a kitchen or main bathroom than it does on a wine cellar in your basement. Whilst a wine cellar would be nice to have, not everyone will desire the space to be used in that way. If your goal is to sell your home in the future and make money on your renovation, then be sure that you’re spending money in the right places. Some people make improvements to their home because they want to enhance the quality of their life rather than make money back. If you plan on living in your home for the next decade or more and want a hot tub in the garden, then go ahead and put one in!
Should I just buy a new home?
There may come a point in the future where it no longer pays to spend money on your home when instead you can just put the cash towards a new one. If you’re planning for a major renovation to turn your house into your dream home, then it makes sense to spend money but if your renovation project is just one of many, then it might be worth just to see what the housing market is like in your area and whether or not a different home will have the things you are looking for. The last thing you want to do is spend money on a home renovation project and regret it straight afterwards.