Are you considering renovating your home?
While it’s easy to get caught up in the excitement of home renovations, this type of endeavor isn’t always easy on the wallet. In fact, American homeowners were estimated to spend $340 billion on home renovations in 2018 alone.
Between the hiring of architects and contractors as well as the cost of building materials, it’s easy to see how quickly these costs can add up. For many, this financial burden can be enough to make homeowners reconsider the idea of a renovation altogether.
Fortunately, there are steps that each and every homeowner can take to help relieve the financial burden of a renovation.
If you’re wondering how to pay for home renovations, you’re going to want to read this. We’re uncovering the seven most significant ways to turn your dream of renovating your home into a reality!
Table of Contents
1. Focus Your Renovation
While it may not be realistic to renovate your entire home, it may be more realistic to renovate one or two chosen rooms.
If you’re working with a limited budget, focus your renovation on a more micro-scale renovation. Remember, there’s no saying that you have to renovate your entire home in one sitting. Instead, choose one area of the home that you are looking to focus your current budget and attention on.
Not sure where to start? Try speaking with your real estate professional to gain insight as to which rooms offer the best return on investment.
2. Renting a Room
If you’re serious about making extra cash to finance your home renovation, why not consider renting out a room or level in your home?
This could range from renting out one bedroom, a basement, or a second or third level to a tenant. You can determine whether a short-term or a long-term tenant would be required to help fund your renovation budget.
This is an especially popular route in college towns in which many students are looking for both short-term and long-term rentals.
3. Online Loans
One of the most common and straightforward means of funding a home renovation project would be through acquiring a loan. This gives homeowners the money necessary to fund the project at that moment.
Unfortunately, these loans can be difficult to acquire for a number of homeowners. This can be a result of having too many current loans, inadequate credit scores or even a total lack of credit at all.
If you associate with the above reasonings, rest assured that there are still options available to you for acquiring a loan. For example, online loans no credit check allows homeowners access to a loan without the need for significant documentation or credit.
With such a loan, homeowners are able to complete their renovations and have up to 18 months to pay their money back to the lender.
4. Get a Side Hustle
Sure, your 9-5 job may be paying the bills just fine for the time being.
But, if you’re seriously committed to a home renovation, it may be time to expand your working hours. Finding a side hustle is the best way to earn extra money in addition to your regular monthly income.
Fortunately, the online world today offers a number of different online jobs. This could be anything from freelance writing and design to tutoring and teaching.
The best part? These online gigs will typically allow you to commit yourself for as little or as long a commitment as you’d like.
5. Consider a Home Equity Line of Credit
This is a line of credit that is based upon the equity in your home.
Homeowners can use this equity line of credit to fund the renovations in their home. The balance must be paid by the “payback” date or in the event that the home in sold.
The amount that each homeowner is capable of borrowing is based upon how much equity they have in their home at that point in time. This is a revolving line of credit that acts in a similar way to a credit card. So, the homeowner can use as much or as little of their equity as they choose.
6. Do the Work Yourself
If you’re on a budget, why not consider polishing the dust off your toolbelt and lending a helping hand?
There’s no doubt that one of the most costly investments of a home renovation is the cost of labor. While it may be difficult to avoid paying for materials and appliances, it is possible to save money in the labor department.
Some residential contractors will allow you to partake in the renovations alongside them. This takes away from the need for them to hire an additional contractor and will also help to speed up the process.
You can determine how valuable your assistance is depending on your skill level and home renovations background. If you’re new to home renovations, you can stick to low-skill tasks such as painting or removing walls or flooring. If you’re relatively skilled, you can likely participate in most aspects of the renovation.
7. Cut out Your Non-Essentials
If you’re serious about upgrading your home, you’re going to have to get serious about your budget.
Take a hard, serious look at where the money in your household is being spent on a monthly basis. From here, either minimize or cut out any of the non-essentials.
For example, if your household benefits from two cars, it’s time to learn how to live with one car. While it may seem a significant lifestyle change at first, you’ll be shocked at how much you’re saving on an annual basis. In fact, the average cost to maintain a car is close to $9,000 annually.
While these savings may feel insignificant at first, the annual savings may even have the potential to fund your entire renovation!
How to Pay for Home Renovations
If you’re serious about renovating your home, rest assured that there are simple ways to help finance such a cost. In other words, you don’t have to stumble upon a pot of gold to determine how to pay for home renovations.
The truth is, renovating your home doesn’t have to be such a large financial burden. While it does require a degree of readily available money, there are simple ways to get creative in funding such a project.
With the right tips and tricks, a home renovation can be possible for many homeowners. From renting your room and participating in the renovations to taking out an online loan, these actions are simple, yet effective, means of financing your renovation.
To get started, read our blog that outlines which home renovations are DIY friendly versus requiring an expert.