Top 5 Tips for Making the Most of Your Home Renovation Budget
Spring is here, and with it, plenty of homeowners will be making upgrades to their home. Here are our top five tips to help make the most of your renovation budget:
Consider a home equity line of credit
Investing in your home with money from your home’s equity makes sense. Whether you’re factoring renovation costs in your new mortgage or applying for a home equity line of credit.
Click here to find out if a Home Equity Line of Credit (HELOC) is right for you.
Home improvement on a budget
In the end, the best way to pay for home upgrades is with cash. If you don’t have the budget for extensive work, start with the smaller elements of a project. For example, if you're thinking of a bathroom upgrade, things like painting or changing light fixtures can have a big impact. Other impactful, low-cost renovations include upgrading your front door or repainting kitchen cabinets.
If you’re selling soon
Don’t spend too much on a home renovation if you’ll be selling soon. Most buyers aren’t willing to pay too much over your neighborhood's average price, even if you have a luxury renovation. If you just want that luxury for yourself, consider holding off until you’ve moved, but remember to make sure the upgrade doesn’t add to your debt and subsequently impact your next mortgage approval.
If you’re staying for a while
It makes more financial sense to invest in long-term upgrades in your home if you’ll be there for years to come. A new roof, a new heating or cooling system, or new windows may make sense if they are eating into your energy costs now. These upgrades usually take several years, or even a decade, to see a return but are worth it.
Stick to your plan
After you’ve made your plan for spring repairs or renovations, make sure to stick to it and resist the urge to pile on more projects. Often, it’s the case that after you re-paint your front entrance, change the door, and get a new mail-box, something else will jump-out as a sore spot.
Resist the temptation to go over budget! You can always renovate more next year.
What’s your approach to home improvement projects?