Home Renovation: Step 3 – Finance Options

Jul 12, 2018Personal Lending0 comments

Now that we’ve looked at how you should plan and get to your budget for your home renovation, the final step before you go ahead is to consider how you’re going to finance your projects. What are the different options you have at your fingertips to help you get those life changing home renovations you’re dreaming of?

Use Your Own Savings

If you have savings in the bank and are looking for a reason to use them, then this could be the time. So many of us save for a rainy day that never comes, so why not use the savings to invest in your home renovations instead?

The benefit of using your existing savings is that you know you’ve got the money to hand, and can put the budget for your project together with your savings balance in mind.

The downside you need to consider is how often you have relied on your savings over the years. If you’ve often used your savings for sudden budget shortfalls or unexpected expenses, do you really want to remove that option?

Start Saving Now

While there is a degree of satisfaction in wanting something and saving diligently until you can afford it, as far as we’re concerned here at NOW FINANCE, life is too short for waiting around.

If you start saving for your home renovations now, you might hit your savings target in a few years, but it’s far likelier that:

  • You’ll need to use your savings for emergency expenses
  • You find yourself struggling to maintain your discipline for saving
  • The cost of your renovations will go up while you’re saving, leaving you needing to save even more

There’s nothing wrong with wanting to save the money to pay for your home renovations, but is it worth waiting around for what could be several years?

Pay on Your Credit Cards

If you have access to finance via credit cards, then using them to fund your home renovation projects might seem appealing. After all, you already have the credit cards, don’t need to worry about passing a credit check, and you can pay off the balances at your own pace so long as you repay at least the minimum amount each month.

This is where the problems come in. Many people find it all too easy to fall into the trap of only making the minimum payments on their credit cards. This means you could easily “pay” for your home improvements on your credit card, but by the time you’ve paid off a $20,000 credit card debt with minimum payments you’ll have repaid in excess of $100,000 once interest is accounted for.

Unless you’re really fortunate with the increase in your property value, this will easily wipe out any gain you were hoping to make through investing in home improvements.

Use a Personal Loan

When you take out a personal loan to cover the cost of your home improvement projects, you benefit in a number of ways:

  • If you contact OSINSKI FINANCE you may be eligible to  borrow up to $40,000 over seven years, and easily budget because you get your interest rate before you apply so will know what your repayment schedule looks like
  • You know exactly what the total cost of the loan will be
  • You know exactly when you’ll be making your final payment and becoming debt free
  • You can get those home renovations now rather than waiting
  • You’ll save tens of thousands of dollars against the cost of taking out a credit card and repaying the minimum amount

If you want to keep your savings for emergency expenses, then a personal loan can help you get your home renovation paid for today. You can get the work done and enjoy your improved quality of life and the added value on your property while repaying your personal loan over a period of up to seven years.

Your Home Renovation Plan

You now have everything you need to help you plan, budget for, and finance your home renovation project.

Why wait? Make it happen as soon as you can and enjoy the improved lifestyle and added property value your project may bring!

Disclaimer: This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

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Osinski Finance

Dedicated to helping you secure your first home, next home or a better deal.

Phone

(08) 9511 1177

Email

firststep@osinski.com.au

location

157 Clyde Avenue, Baldivis WA 6171

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