If times weren’t hard enough, we now face the biggest recession on record, which will make the costs of moving house a greater factor in whether we stay and change what we have, or whether the changes are too great and a new property is the only way forward.
The biggest problem with any house renovation project is the budget. There is no upper limit on what you could spend but obviously we would urge you to try and not spend more than the resulting property is worth, but do remember to include in your budget a contingency fee of approximately 20% as you will find things along the way that you hadn’t planned for.
Here are some possible tips on how to finance a home renovation project once you costed your budget:
- Mortgage
- Personal loans/credit card
- Family borrowing
- Releasing money from your pension or home equity
Be realistic with your budget, and potential overspends. Building materials can rise rapidly so what you may have costed three months ago may not be the same as you need now. Also, as you go through your project, make sure you write up every cost no matter how small, as often the small things add up to a significant part of the budget.