With the present slump in the housing market and foreign holidays becoming more expensive many people are investing money in their own homes. Whether it’s for home repairs or larger scale home improvements people will benefit from enjoying a more polished home whilst also increasing its value.
First make sure that you pay as little interest on this loan as possible, so make sure you shop around, YOU DON’T NEED TO REFINANCE YOUR MORTGAGE. You should also try to get a tax-deduction for what you do pay for this mortgage loan and don’t end up sacrificing your financial health and well being. Not doing this is the first step of placing yourself in the poor house. Secondly ensure that you take into account all the variables when applying for that loan: Where can you get the best financing? How will the monthly payments affect your budget? How much equity do you have in your home? What is the nature of your home improvement project How long it will take you to repay the debt?
These are key questions that should point you in the right direction. You must find the best loan option. But even then you must make sure that this does not cause your budget to collapse. If it does then you will be in serious problems with respect to the monthly payment. Having less than twenty percent (20%) of market value in equity in your home is a clear signal to wait. This means that in one felt swoop you can move from happy owner to foreclosed properties if the financial institution that you borrowed from goes belly up. With respect to the nature of the project and the term life of the loan here are just a few questions you MUST ask yourself before taking on that loan.
Prioritise – Prioritising your jobs is the next most important step, so once you have the full snag list in your hand think about what’s most critical. For example if it’s nearing Christmas it would definitely make more sense to fix a leaking tap rather than mend a broken fence at the end of the garden – which will more than likely be covered in snow – by the time Christmas arrives! So think about what needs to be done, talk to family members, look at your budget and then put a corresponding number beside each job!
Materials – Ok so now you have your full job list, and you know what jobs you want to do next, but what about the materials? Many jobs around the house like doing a paint touch up, may already have the existing supplies in the garage or attic. So take an inventory of what you have, there’s no point in buying things you already own! After that you may need to buy something, for example if you’re replacing an old floorboard or door handle you may need to go to your local hardware to buy the necessary materials.
Examine your other financial obligations? Your financial bases should be covered i.e you should be saving enough cash for retirement, to clear all existing credit card debt and at least ninety days living expenses saved in an emergency fund.
Reward – Lastly one of the great things about doing DIY and performing Home Repair jobs is the gratification you and your family will receive when finished. But also try to get other family members involved as the old saying goes “many hands make light work!” has never been more true. And it’s also a great way for children to learn about the importance of maintaining a great home whilst having some fun!
Author: Sigita KimThis author has published 2 articles so far.