Tips for making changes to your home with a refinanced loan
Are you getting a little tired with the look of your home? Have you got some spare time for a project that will add value to your property and give you something fun to do?
Well, it sounds like you're the perfect candidate to get creative and upgrade some parts of your home with a refinanced loan.
Performing renovations on your property is a great project to undertake and is a good way to make your home more valuable and up-to-date.
From installing a new kitchen, polishing wooden floors, or even performing a large landscaping project, these can all make your home more suited to your lifestyle.
You can also improve your home to appeal to other buyers, which is great if you're planning on selling your home in the near future.
Here are some helpful tips that you might want to keep at the forefront of your mind.
Find out what needs to be done
If you've found yourself mentally creating a list of some features that your home needs, then you may want to think about speaking to a mortgage broker so that you can get these plans into action.
For example, when preparing dinner in the kitchen, have you always wished you had a large walk-in-pantry?
Or if you're planning on starting a family in the near-future, don't you think life could be made a little easier with a nursery adjoined to the main bedroom?
Perhaps you want to build a man-cave so you can have a few hours to yourself?
It's a good idea to identify things that could improve your home and then create definite plans to get them done.
If you don't do this, then you may find yourself straying away from plans and ideas that you have in mind and potentially overspending.
This leads on to the second point.
Create and stick to a budget
One of the biggest mistakes that people tend to make is overspending on renovations. Not all costs involved in the process are in our control, but we can at least make room in our budgets for the unexpected expenses that crop up.
To create your budget, you will need to figure out how much equity you can access in your home loan. From there, it's a good idea to shop around for contractors and obtain a few different quotes.
When renovations begin, it can be tempting to add other features, but try not to get too crazy and stick within your financial means.
Mistakes to avoid
If you're planning on undergoing some medium to large renovations - such as adding another room or a deck - then you're going to need to get council permission.
Council approval is needed if you are going to be changing the structure of your home.
If you happen to forget to push the necessary paperwork or sign off those important forms you've put aside, then you could face paying huge fines. Not an ideal situation if you're renovating on a dime.
While DIY is something that every Tom, Dick and Harry thinks he can do, it's not always the case. So if you've planned on carrying out the work yourself, but you have zero experience, then you run the chance of making a mistake.
To avoid this, hire a professional, or get help from some friends or family who have a good idea of how to carry out some of the projects.
There is a range of refinancing options that you have on hand to complete renovations of all types.
These include a redraw facility for smaller projects; a loan top up for medium sized renovations; and home equity loans for bigger projects that need more funding.
So are you ready to make some changes to your home?