Archive for the ‘Home Renovation’ Category

In a house remodeling, wall color and placement, room size and other renovations may be changed. But in every renovation project, one thing is always present: financing. Nothing can be started without funds; nothing will be done without an adequate budget. Where can you get the money to support your project?

Here are some sources of home renovation financing:

• Ready money and assets convertible to cash

These are money sources readily available to the homeowner like cash, liquid assets, savings, checks, savings bonds nearing maturity.

Advantages

1. Interest, fee, and charge free
2. Not dependent to anyone.

Disadvantages

1. Exhaust reserves.
2. Not everyone has enough cash on hand.

Conclusion: Ready money and assets convertible to cash are for those who have sufficient funds.

• Your swipe card

A credit card is issued by a bank or business that allows somebody to purchase goods and services and pay for them later, often with interest. Some are paid monthly; others offer zero-interest that are payable in 6 months or a year.

Advantages

1. Money is accessible anytime.
2. With large home renovation-related purchases, the card holder can accumulate reward points.

Disadvantages

1. Risk of high interests and fees
2. Gives a false sense of security: a feeling of having more money that you actually have.

Conclusion: A complicated home renovation financing that requires maintenance and proper attention.

• Loan with home as collateral

The classic home renovation funding: home equity loan.

Advantages

1. Perfect in financing large projects like room additions.
2. More affordable interest rates than personal loans and swipe cards.

Disadvantages

1. Too much use of a home’s equity depletes the amount to be received by the time the house is actually sold.
2. The large amount available encourages spending more than what is just necessary.

Conclusion: Home equity loans are perfect for big projects only.

• Equity from contributed labor

Sweat equity requires the help of family and friends. They will help in the home renovation just for a good time or a good day’s meal.

Advantages

1. Free labor
2. There is 100% control over the project.

Disadvantages

1. Materials still needs payment
2. Hiring home renovation professionals work more efficiently.

Conclusion: Sweat equity is good is as good as bonding but requires some skill in home renovation.

There are a lot of ways on how to finance a home remodeling project. It is up to you on which is more profitable, safe and accessible.

Many home remodeling projects face drawbacks due to lack of thoughtfulness. Keeping your distance to the following pitfalls of home renovation may help things move swiftly.

1. Risking Yourself to Danger

Many who do house remodeling commit failures of omission. And what do they omit? Safety, protection, care and security.

When they get hurt, they do not only harm themselves but their renovation timetable. So, keep away from lead-based paints and asbestos. Be careful when cutting things, hammering, climbing ladders and handling electric wires. Even professionals get hurt in renovations.

2. Starting a Home Renovation Unprepared

Always start by looking at the big picture. A house remodeling project must not be done spontaneously. It needs a lot of thinking and rethinking, planning and good decision making.

Planning a home renovation is easier with all the resources readily available. Take advantage of free web-based videos that provide the basics of home remodeling projects. Doing research can help in making a good remodeling construction plan.

3. Not Maximizing Work

Get things done. Like when working on new drywall installation, why not check on the electrical wirings or install new insulation? Maximize every step.

4. Not Asking for 3 Estimates

We always hear that it is best to get at least 3 estimates. Consulting 3 licensed contractors about huge projects like house additions and major room remodels can save you a lot of trouble. And if you are planning to do everything on your own, still ask at least 3 subcontractors. Contractors do estimates that may vary widely. Asking more may give a better picture on how much will be done and how much must be paid for.

5. Too Much DIY

Home remodeling by yourself will save you from contractor’s fees and other expenses. But you can not do everything by yourself. You may need professional help. Installing a new drywall may appear doable, but you may end up wasting much time and effort in figuring out how to actually do this. Do not pretend that you can fix everything up. Asking for some professional aid can not hurt. It can actually save you and your home remodeling project.

Starting ill-equipped and without consultation, jeopardizing your safety, not leveraging and doing everything yourself too much may cost you your home remodeling project. Better be safe than be sorry when it is all too late. So work carefully, stick to a plan and ask for help, this will lead to a successfully remodeled house.

A home renovation is a serious matter. If you are planning one, it will not hurt if you check out these suggestions:

1. Supervise the home renovation. More than anyone else, you are the person who is in the best position regarding renovating your home. You might not know anything about construction, but leaving your home builder contractor alone without your oversight places your house in danger. Changes might be made without your consent, or worse, your plan might not be followed. When it comes to your house remodeling, it is important that you are able to talk professionally with the people that you will be working with. If you are not confident to oversee the renovation by yourself, you can ask a friend or a relative with more knowledge.
2. Prepare for the house renovation. During the time period while your house is being renovated, you might have to transfer temporarily to another house. Plan your renovation well. You might want to fix one area at a time so that you won’t have to live in another place while your house is being renovated. When you want to renovate your kitchen, design a good strategy. It is difficult to move around the house when it is the kitchen that is being renovated. More importantly, you won’t be able to perform some tasks with your kitchen disabled.
3. Do some parts of your home renovation yourself. You might want to get your hand on your house renovation. For the easy parts, save labor costs by doing them yourself. You can even enlist your family and make it a family activity. To balance this off, make sure that you don’t get overly enthusiastic and do even the difficult parts. Leave the crucial tasks such as plumbing and electricity to the experts.
4. Secure the permits you have to get before you start your home renovation. Home renovation is very similar to home building. There are rules and regulations governing these activities, so it is best to check in your local area or state which permits you have to secure. Make sure that you follow all rules and regulations in your area. If you hired a contractor, he is the one responsible to secure necessary permits.

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