When it comes to your home, it’s already worth a large amount of money on the property market. However, there’s a catch. There is a lot of the home that you can’t influence and change. For example, you can’t alter the location of the property, you can’t change your neighbours, and you can’t change how close you are to shops or a motorway. However, what you can change is the way that you improve the financial value of your own home, and we’re going to be taking a look at that here and now. Loft conversions and home extensions are big projects and we understand the financial implications of large scale home renovations and we always get asked the different options in financing these projects. We talk through some ways below.
Homeowners Loan – The Way Forward?
One definitive way to improve the value of your property is to get a homeowners loan. This kind of loan is something which is granted to people who own their property and can begin to make modifications and alterations to it. This may seem like something which may not be a financially beneficial situation for all parties, but it’s worth considering in another way. If you choose to get a loan for your property, and then that property has a new kitchen or a conservatory installed, then you’re going to get a return on your property, because the total value of your property is going to go up. Each new thing that you take the time to install and set up in the home will add to the value of the property, which will, in turn, mean that you can sell it for more and make more back overall.
Homeowners loans are often useful for people moving house because it grants them a whole new space to advertise when it comes to selling up and moving on. If you had a loft which was older and not used, and you got a homeowners loan, then you could use it to improve upon that space and make it a usable place on your property. If you’re going to sell your home and move to a new location, then it does make sense to try and make the property you currently have the most attractive and valuable it can be.
Other Financial Options For The Home Improvement
One thing you could consider is a loan from a third party. While these can be potentially difficult to navigate, it may well be worth considering it as an option. What you would need to do, in that situation, is compare the amount you’re going to pay back overall against the amount you’d make in the long term. So for example, if you borrowed money to get a new modern kitchen, you’d need to weigh up the amount you’d have to pay back in interest and such against the total value your property would increase by when it came to selling and moving house.
The same logic can be applied to a loft conversion or any other home improvement. It’s all about comparing the options available to you. By looking carefully at the amount, you’ll spend against the total amount your property will increase by will help you to make the best possible decision when it comes to deciding if you’re going to spend any amount of money.
You can sometimes get grants for home improvements, although this depends upon the home you live in. Sometimes local authorities or the government will aid you in making improvements to your home because it’s in their interests to do so as well. This might well often be the case when it comes to properties owned by a local council, as they’ll want to make sure that the property is worth more so that they gain more in the long term. The problem with a grant, however, is that there’s a lot of different criteria for getting one, and you have to have a very specific set of circumstances to get approved for a grant, so this option isn’t quite worth relying on as much.
Alternatively, you can just save up the funding required for the home improvements yourself. Obviously, this is recommended for people who don’t want to find themselves in debt to anyone or can’t afford to accumulate more debt in their lives. In this case, it’s wise to get multiple quotes for the kitchen renovation, loft conversion or other home improvement, and then select the least expensive one, or the one who strikes you as being the best for your situation. You don’t want to make a mistake when it comes to finances, as you might find yourself paying for two sets of work; the initial job completed at a lower quality, and then another to put right any mistakes made by the first team.
Overall, there are several finance options available to you if you decide to invest in home improvements. A loan is your best bet for people who do not want to raise funds themselves, with a homeowners loan often being the wisest course of action. The issue which you may encounter with a third party loan is that you’re sometimes at the mercy of a companies policies about loans and their interest rates, however high they may be. Grants can be quite circumstantial, but that’s not to devalue their potential worth. It is sometimes best for you to take the donation if you can get it, and then you don’t have to worry about navigating loans or funding the project yourself. Obviously, the option you decide to go with will be based entirely on personal preferences and your situation. Making home improvements is nearly always a wise choice, as it will raise the value of your property in the long term and ensure that you have more money left for yourself when the property is sold. However, financing these kinds of endeavours is often what people struggle with, and it is down to you to pick the best way to go about financing them. However, choosing to make a home improvement will be worth it in the long run, and is something you should consider if possible.
If you want to talk about your options for your next home build project in Herts or North London why not get in touch with us today