Taking On Debt To Fund Home Renovations: Good Or Bad Idea?

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There comes a point for many homeowners when they want to do something different with their home. It might be an extension to provide extra bedrooms, or just a full-scale kitchen renovation to make cooking that little bit more enjoyable.

The problem with home renovations is that they tend to be expensive. If every homeowner were to wait and diligently save the money they need for a renovation, then very few people would be able to get anything done to their abode. That kitchen remodel, for example, will cost around $20,000 according to homeadvisor.com — a huge amount of money to save just by putting a little aside from your salary every month.

So the question of borrowing becomes a focus. If you’re generally financially prudent, then the idea of taking on debt to fund a home renovation might make you wince. However, it might be a better idea than you initially think. Overall, funding a home renovation through borrowing is a good idea. Here’s why…

 

#1 – You’re Increasing The Value Of Your Primary Asset

Our house is the most expensive purchase that many of us make, meaning it’s also our primary asset. It’s therefore sound financial sense to want your main financial asset to be as nice as it can possibly be. Not only will a renovation improve your living standards, but it should also mean that you’re able to command a higher asking price when it’s time for you to move on. Investing in renovations can, in a very real way, be seen as an investment in your future financial status.

 

#2 – You Can Control How Much You Want To Spend

If you read through personalloan.co, you will see that the amount that you borrow regarding a personal loan to fund renovations is entirely down to you. There’s no need to be profligate just because you’re using borrowed money to fund your renovation; you can still keep the budget tight and practice your usual frugal methods. Provided you do the math and are sure you can meet your repayment figure every month, the rest is up to you. If you want to do a cheap-and-cheerful renovation, then that’s your call. It’s also your call if you want to spend a little more. So long as you can afford it, you can set the budget where you feel comfortable and take things from there.

 

#3 – Living In A Nicer House May Entice You To Stay In More

If you are on a mission to examine your spending habits and cut down on the amount you spend on eating out, then making your house a nicer place to be in is of huge benefit. The nicer your house is, the more comfortable you’re going to be when it comes to spending a night in rather than heading out for an evening — so a renovation could actually save you money in the long-term.

So the next time you wish that your home was different, it’s worth considering borrowing to fund a renovation.

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