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There are lots of reasons why you might want to upgrade your home and undertake some renovations – it might be because you think things look outdated, or you fancy a change, or maybe you’re getting ready to sell, and you want the place to look as good as it can to attract buyers (and a good price). Whatever the reason, whatever you want to do, it’s going to cost money getting that money isn’t always easy; if you don’t happen to already have it in the bank, what can you do?
Luckily, there are some options, and even if they don’t all appeal, there might be something in the following list that helps out and ensures you can get the work done sooner rather than later. So with that in mind, here are some ways to raise money for home improvements; read on to find out more.
The first option, and possibly the last one if you’re able to do it and it all works out positively for you, is to remortgage your home. This can be a fantastic strategy to help you get the funds you need without costing you too much because it’s all about releasing the equity that’s in your home.
Basically, when you remortgage, you need to find a mortgage broker who can find you the best deal so that you don’t end up paying more interest than you were before, and you can release a little of your home’s equity without any penalties to worry about. Remortgaging isn’t just a way to get your hands on some extra cash, either; you might end up paying less per month than you were, even if you borrow a little more, so it’s always worth asking.
Get A Loan
If you prefer a shorter term kind of borrowing (remember, a mortgage is designed to be spread over decades rather than months), taking out a loan is quite a straightforward thing to do, and there are various types of loans depending on your situation and preferences. You might want to get a personal loan, for example, or perhaps a loan that’s secured on your home (these can often be cheaper and easier to get, but if you don’t pay, your home will be at risk, so you’ll need to weigh up the pros and cons).
Just like if you were to remortgage, it’s crucial to research and compare interest rates, terms, and conditions offered by different lenders to find the best option for you, depending on whether the cost or the term length is the most important thing.
It’s vital you can pay back the loan, so make sure you have a budget in place to show you what you can comfortably borrow – going overboard is a dangerous game to play, and it’s not worth getting into financial difficulties just to make your home look nicer.
Not everyone is comfortable with the idea of borrowing money and getting into debt for their home improvements, and if that’s the case for you, then you might prefer to sell some things around your home to raise the funds. Not only can this bring in some money (especially if you’re selling rare collectibles or electronics, for example), but it will also declutter your home, and that will make it look even better when you carry out the improvements. The less ‘stuff’ you have around, the better everything tends to look.
Of course, you don’t want to sell things you actually need or that you’ll regret getting rid of, which is why it’s a good idea to go around your home and make a list of everything first. In that way, you can think about it all for a few days before deciding that you definitely can or can’t part with something.
Whether you have a huge list of things to sell or you can’t find anything you want to get rid of, there’s something else you’ll definitely be able to do (even if it doesn’t feel like it right now); cut back. Sometimes the most effective way to make money is just to stop spending it, even if that’s a hard thing to do.
The main issue is that spending money on unnecessary things makes us feel good. We might know it’s not important to spend that money, and we might know it would be better used elsewhere, but that doesn’t take away from the fact that that rush you get when you spend the money in the first place is wonderful. It’s even addictive.
However, it might surprise you to learn that saving money can also feel good and be addictive, and it’s a matter of getting started – then you’ll see what we mean. So take a look at your outgoings and reduce them, bit by bit, until you’re saving a decent amount and feeling good about it too.