Want to Invest in Your Future? Home Improvements May Be the Answer!
There are a couple of ways to think about improving your home for the years ahead. You can perform a few key renovations to increase the financial value of your property. Or you can focus on projects destined to improve your family’s comfort, convenience, or usable living space. Either way, an investment in your home is an investment in your future.
There’s No One-Size-Fits-All for Home Renovations
Adding value to a home can take many forms.
Perhaps you’ve purchased an investment property that requires plumbing, electrical, or roof fixes before you can sell it. Maybe it’s your own home in need of repair. Or perhaps you’re looking for a way to turn your existing house into the dream home you’ve always wanted.
Building a garage, shed or workshop, adding that extra bedroom or office, finishing the basement, or investing in a sun room or deck are some of the best ways to make the most of your time spent at home.
But if you’re looking to renovate for financial reasons, the Appraisal Institute of Canada says you can count on certain types of home improvements to generate a higher return in terms of increasing your property’s market value.
Those improvements include:
- Kitchen and bathroom remodels,
- Addition or expansion of storage space,
- Freshening up of interior and exterior paint, and
- Upgrades to lighting, flooring, cabinet hardware, and curtains
Whatever your investment goal, you have a number of options when it comes to paying for your home renovations. Just remember that no matter which option you choose, you should always set aside money to cover any unexpected costs.
Always Budget for More Than You Need
Any time you take steps to make your existing home better, you should expect it to cost more than you budgeted for – even if you’re planning to do some of the work yourself. Many Canadian homeowners in fact (about 39%), severely underestimate the cost of their home renovations.
You could rely on credit cards, apply for a bank loan or line of credit, or you can refinance your mortgage to cover your planned and unplanned renovation expenses. But payment terms for credit cards and cash advance loans are short, and interest rates are frequently high.
Bank-based mortgages and HELOC’s, meanwhile, can be difficult to come by if your income or credit is working against you – especially in an environment of stricter lending regulations and mortgage stress tests.
So what’s a homeowner with strained or poor credit to do?
Use the Equity in Your Home to Fuel Your Improvements
As it happens, a large number of Canada’s home improvement dreams are fueled by home equity loans. Using the equity in your home to secure a home renovation loan can help you increase your property’s value – whether you need $10,000 or $500,000 to complete your project.
A home equity loan (or second mortgage) from Alpine Credits, for example:
- typically has a lower interest rate than most major credit cards,
- includes a fast and easy online application process, and
- approvals are driven by the equity in your home rather than by your credit or income history
If you decide that financing your home improvements – and investing in your future – with a home equity loan may be the right choice for you, Alpine Credits can get you the money you need for supplies, parts, or labour quickly and painlessly.