Sometimes it’s easy to know which home renovations to do. If your roof is leaking or the ice dams are building up every winter, deciding to address these issues is a no-brainer. Sometimes, though, there are competing priorities that aren’t urgent but will nonetheless help your home function better, look better, or sell better when the time comes.
When your budget is limited, it pays to be smart about the home renovations you choose to do, and to carefully consider all your options before choosing. Here are some ways to decide which renovations are the best choices for your home and family.
Setting Home Improvement Goals
The first step in the home improvement process is to decide what you want most out of the renovations you decide to do. Maybe you want improved functionality of your home’s layout, updated technology that will make your home more efficient and save you money, or a more current look for your home. Identify your goals for renovating, and you can make better decisions about how to proceed.
Once you have a direction for your renovation, there will probably be a number of different options from which to choose. For instance, if you want to make your home more efficient, you could replace the roof, windows, or lighting and appliances in order to achieve your goal. Within each of these categories, there are multiple options that offer various levels of savings. In the roofing category, there are metal roofs, energy efficient asphalt shingles, or solar roofing that can provide some of the home’s energy needs.
Different options will have different price points and varying levels of benefits to consider. Initial price is one consideration, but it’s important to take into account any cost savings that may result, as well as increases in home value, should you plant to sell in the near future.
Before you decide against renovations that could really benefit your home, you should fully investigate the possible ways to pay for home renovations. A home equity loan lets you use your equity to improve your home, paying back a little bit each month. The great thing about using your home’s equity to renovate is that your home value will increase after the renovations, generating even more equity.
Other financing that may be available includes low-interest credit cards, short term contractor loans, or a complete refinance of your home. You could also borrow money from an IRA or 401(k), although you will want to check with your plan’s administrator for details about how those options work.
Once you have investigated all your payment options, you may find that you can choose to complete more renovations on your home than you ever thought possible. Your home is an investment, but it is also the place you spend the most time. Renovations that improve your quality of life are worth pursuing, if you can get the financing.
Moonworks offers home renovations of all kinds, and you can always get a free estimate by calling 1-800-975-6666.