Home renovation projects can be exciting and daunting all at once. The idea of transforming a dull or outdated space into something beautiful and functional is appealing, but the cost of the project can cause anxiety (and lead to sleepless nights) for many homeowners.
Sound familiar? Are you thinking of ripping out your kitchen and updating the style? Perhaps you’ve outgrown your current space and you want to add an extension to cater for your growing family?
Are you worried about the costs? Do you lose sleep thinking about how much your contractor is going to charge you? Are you drowning invoices? If so, it’s time to re-evaluate the situation and think of creative ways that you can finance your dream project (and get back to a regular sleep pattern). Here are some ideas.
Get a Personal Loan
A personal loan is a type of unsecured loan that can be used for various purposes, including home renovations. If you own a home and have been thinking about renovating it but you are short on cash, getting a personal loan may be an option worth considering as it can give you flexibility and the lender will not require collateral.
- Flexibility: With a personal loan, you’re free to use the funds however you please, which means it’s ideal for paying for all the changes you want to make. Use the money to pay for materials and labor or use it to pay for permits or architect fees as the choice is yours and you won’t have to show receipts to anyone. Note that it can be difficult to get a personal loan if you have a bad credit rating or you’re the cosigner on a student loan. It can be difficult to refuse to be a cosigner for a family remember but you need to know the implications that fall on your shoulders should the primary beneficiary default on their payments. By signing, you may never have the option to borrow money to make the upgrades that you dream of.
- No Collateral Required: Unlike many other types of loans such as mortgages or car loans that require collateral, personal loans don’t require any security or assets in exchange for the funds. The amount you’ll be approved for will depend on several different circumstances including your credit score and income so think about these factors before you put in an application.
Get an Extra Job
If you don’t need a lot of cash to enhance your home and bring your visions to life, then getting another job may be a good idea. While it may seem like an added stressor, having additional income can go a long way in upgrading the place you call home. There are many options that will not require a huge amount of your time and the pay can make a big difference to your weekly paycheck.
Freelance writing, dog walking, dog grooming and childminding are just some of the options that you could consider. Not only will you get to increase your take-home pay, but you’ll also have new networking opportunities which could prove to be very beneficial when it comes to finding contractors for the renovations.
Remember, the person you’re talking to likely has a favorite plumber or a cousin who does plastering, you just need to drop the line and wait for the connections to start forming.
Leverage Your Assets
Do you own your home? You could look to a home equity line of credit (HELOC). Do you have stocks that are paying dividends? Maybe you could withdraw some of the funds and make them liquid. Are you the owner of some cryptocurrency that still has value to take advantage of? Free up the capital and transfer it into dollars in your bank account.
Maybe you own a nice car, but it spends more time sitting in the driveway than it does on the road? It could be time to sell it and downgrade to something more practical and affordable.
These are all ways to leverage the assets you have and put the capital to good use. The money you do invest your home will more than pay its dividends should you ever decide to sell so it’s a win-win.