The burning issue of many Australian homeowners is will I renovate or move? So if you are one of these homeowners you may also have realized that the high cost of buying a new home and selling your current home is considering very much the challenges of renovating your current home. However, you should only renovate if the renovations will:
Add value for your home
The result of an improved living standard
Used to perform emergency repairs or entire home extensions
Does lender credit provider impose restrictions on the type of renovations?
Subject to their credit policies and lending guidelines, most lenders lenders allow you to lend you the value of your home for some valuable purposes, such as if you need:
Add another bedroom or other room
Renovate update your bathroom or kitchen
Add a pergola and outdoor recreation area
Install a swimming pool
Expand your garage from a single garage to a double
Build a secondary residence on your existing property
Any other structural or nonstructural construction
What methods can I choose?
Here are some examples of the popular methods to ensure simple home improvement:
Home Equity Loan This financing arrangement is perhaps the most common way for the Australians to finance their housing renovation projects. A home loan loan works where you borrow the money against the value of your home. To illustrate this, I have given the following example:
The example assumes that your home is worth $ 700,000, and
Your loan is $ 300,000
From the above example you will have $ 400,000 of equity in your home, which you can use to fund your renovation project.
Recent rise in house prices has resulted in many Australian homeowners having acquired significant equity in their property. It can make it easier for these people to get a home improvement loan and reduce their need to dig in their own cash reserves.
Personal Loans This financing arrangement is an appropriate option for you to consider about:
You have no equity available in your home, or
You only need to complete some minor renovations
By choosing a shortterm personal loan you will find that:
Building Loans This financing arrangement is available for you to complete major renovation projects that require the approval and services of a licensed builder. The lender creditor will impose the following restrictions when considering a building permit for home repair:
The lender creditor will not finance the entire loan amount in front of you
The lender creditor leaves the money for you only in stages as the renovation proceeds
Can I afford to rebuild my home if it was destroyed?
You should already have normal housing and building insurance on site, but you must increase your building insurance to cover the cost of your housing renovation project. So if you can not afford to rebuild your home if it is destroyed by fire damage or from other natural disasters, you should ask the following questions:
Do you have building insurance?
If you have onsite construction insurance:
Do not delay and take action immediately
So, if you are thinking of renovating your home without stress, seek advice from a professional qualified and expert home finance specialist who is a specialist in home improvement loans and has helped many homeowners when they considered renovating their property.
He she can arrange funding for your renovation project. A mortgage broker will provide you with a wide range of financial options and products after you create a budget for you. But keep in mind that you should be clear about your future plans, as it helps you choose the right financial alternative.