February 01, 2016
Are you thinking of Renovating?
Is now a good time to revisit your renovation plans and get the wheels in motion to make them a reality?
Renovating is a great way to make lifestyle improvements! As with anything, whether you intend to make smaller cosmetic renovations or larger structural renovations, it’s really important to do your research.
Mortgage Choice Penrith offers some great tips on what to consider. Paul Holland your local broker has listed a few key points to keep in mind.
1. Set a realistic budget
Take a look at what sells in your area, this may help guide you.
Add up all the costs, put a plan together with the help of a builder and someone experienced with managing council or building approvals.
Add a 20% contingency, and then stick to this limit.
2. Stay in touch with the Property Market and don’t overcapitalize
Investigate whether you can achieve your renovation without over capitalising on the investment, that is, when the cost of the project outweighs the value it will add to your property.
Stay in touch with what other people want, ask agents what people look for, attend open homes, ask friends and do your research. This can help change your perspective and focus on what will add the most value.
3. Funding your renovation
Once you have added up all the costs and settled on a renovation plan, it’s important to turn your attention to how you will fund the project. Depending on the scale of changes, there may be a number of different finance options to consider such as a loan top up, personal loan, line of credit loan or even a construction loan.
To help make the right finance decisions when renovating to create your dream home, seeking specialist help is a sensible idea.
A good first step is to talk to a local mortgage broker, like myself, who will be able to clarify your property goals and help you assess the nuts and bolts of the finance options most closely aligned with your needs and circumstances.
This may also be a good opportunity to shop around and compare your loan to the hundreds of others to see if there is one offering a better, well suited option. If you have had your loan for a number of years it may be possible that a new loan structure will result in savings meaning the new repayments may be very similar to your current repayments - even with any extra borrowings you may have taken out to cover the cost of your renovations – and you may be able to get a better deal on interest rates and fees.