Renovating your home can be both exciting and stressful. It is pointless to debate whether it’s a good idea or not. It can be a good investment if budgeted and planned well. If nothing else, the effort will make your home appreciate in value and you can sell it at the best market rate.
Bored with the existing decor and considering renovating your home? Here are some things you need to keep in mind:
Create a budget
Before you embark on the journey of renovating your personal space, you need to fix a budget and ensure you include every detail. You must decide on the amount you wish to spend on furniture, paint, fixtures, repairs, and construction. It helps to create a detailed budget keeping the big picture in mind. Whether you decide to apply for a home loan or fund the renovation yourself, preparing a budget is a must.
Don’t underestimate the cost
The biggest mistake most of us tend to make is to underestimate the cost of the renovation. This often leads to expenses that go beyond one’s budget. The anticipated budget may be realistic for small spaces, especially if you use low quality material, but this may not be ideal. On the other hand, while (say) choosing window frames, if you decide to forgo cheap aluminium and go for the best quality in wood, it could easily double your financial outlay. So keep a margin in your budget for a slight increase in costs.
Get multiple quotes
Before fixing a realistic budget, you may need to do some legwork. Getting multiple quotes is important. Do not settle on a contractor before you get a quote. Ask what the cost covers and how they intend to handle the problems in your home. You also need to consider the time the contractor will require to finish the job, because renovations are neither cheap nor quick. Stop comparing your home with the ones in the magazines you read. Consider why you want to redo your home and look for ways you can achieve it within your budget.
Factor in extra costs
There are always extra costs that you may end up incurring. This is because you necessarily have to leave some parts to guesswork. To avoid blowing your budget through the roof, you need to add a contingency fund. This could be anywhere between 10% and 20% of your budget, depending on the type of project. Talk to your shortlisted contractor to get an idea of the extra cost and what it could cover.
Work out the finances
This is the most important aspect of renovating your home. You have finalised the contractor, prepared a budget, and even set aside a contingency amount. But how are you going to finance the renovation? You cannot blow all your savings on it. Before the work begins, you will have to decide how to pay for the project. If you do not have all the required money in hand, apply for a Home Renovation Loan. It can help you fund the expenditure without bankrupting you. This loan is available for the construction of a new home as well.
Applying for a Home Loan is a simple and straightforward process. Once you prepare a budget, you can try to get your home renovation funded through a loan. Use the Home Loan EMI Calculator to estimate the amount you will need to pay each month. Home loans are offered at competitive interest rates and come with flexible repayment tenures.
Lastly, have patience. It will keep you from making impulsive – and costly – decisions and ultimately save time and effort!