Practical Ways to Pay for Home Repairs and Improvements
Written By: Julian Lane
Image via Unsplash
Home repair and improvement projects are a big deal. They can improve your daily life, help you sell your property at a higher price, and yield many other benefits. But as with anything worthwhile, home projects require a significant investment of time, energy, and money.
To keep yourself in a sound financial position and minimize stress, it’s crucial to understand the costs associated with your projects and find the best ways to pay for them. Below, Top Picks Guy has provided some advice to get you started!
Go Over the Costs
Your first job is to gain a thorough understanding of how much your home project will cost. Ask yourself the following questions as you evaluate prices:
- How much does inflation impact home improvement projects?
- How much do rising gas prices affect a home renovation budget?
- How much do rising gas prices affect home buying and selling?
It’s no secret that we live in a tough economy right now, and you must ensure you can afford the home improvement or repair projects you envision before signing on with a contractor. For example, a full-on house renovation can run anywhere from $15,000 to $200,000, while adding a single room or space typically costs a minimum of $135,000.
If you hope to remodel your kitchen, plan to pay between $12,000 and $36,000. A bathroom renovation usually comes with a similar starting price but rarely exceeds $40,000. Remodeling the garage and adding a deck are home projects proven to increase property value, and each can often be done for under $20,000.
Make Wise Decisions
As you research potential renovation costs, learn where to invest during an economic downturn. Don’t invest in projects that won’t pay off. Ask yourself if the home improvement or repair will significantly improve your life or at least help you sell your home for more.
While you’re at it, look for tips to lower construction costs during a recession and how to lower home renovation costs overall. Many online resources can provide you with the information necessary to make good decisions.
Bootstrap Your Projects
You might think that now is a difficult time to save money for anything, much less for a home renovation. However, paying for your home project yourself can leave you in a better position than seeking financing.
There’s no denying that saving is the safest option in the long run. Look for ways to cut costs in your personal budget and save until you have enough, even if it means postponing your project longer than you hoped.
Obviously, you may not have this option if your home needs a major repair (e.g., foundation, plumbing, structural, etc.). Just honestly evaluate your needs and preferences and consider your financial wellness before deciding how to pay for the project.
Opt for a Refinance
If you need to go the path of financing, obtaining a cash-out refinance might be your best option. Refinancing your mortgage will replace your current loan with a new one and free up cash to use for your home project (or to lower your monthly payment). Search “what is refinancing a home“ to learn more about the process.
Fix What You Have
Finally, think outside the box with your home renovation. If you’re essentially remodeling your home to enhance your daily life, see if you can work with what you already have.
For instance, you could hire a local repair service to fix your broken refrigerator instead of investing in a brand new one. Take time to research various repair companies in the area and read online reviews to choose a few worth interviewing. You may even be able to find a company that offers credits or discounts on appliance repairs.
Home repair and improvement projects always require a significant investment. But the better you strategize, the healthier your finances will remain for the long term.
Diligently research the potential costs of your project and use online resources to help you make decisions. Consider saving for the project or refinancing your home to free up cash. Lastly, explore local repair services to see if you can use some of your existing appliances.
Would you like to access more helpful home and garden content? Visit TopPickGuy.com today!