Financing A Big Home Renovation
Finding the money to finance a big home renovation project can be quite daunting if you do not have all the facts to help you make an informed decision. If you are lucky enough to have options available, you should look closely at the merits of each possibility as one may be more suitable than another. Each financing scenario will depend on your own financial situation and your personal preferences. Listed below are a few options to serve as a guide but you should seek professional financial advice before you make a final decision.
For some guidance on current borrowing costs in NZ, this site has a good summary.
Paying cash for a major renovation project should only be considered if you have a large amount of money readily available after you have taken care of all other financial considerations, For example, do you have a well funded retirement plan or are your credit cards paid off? It is certainly the easiest payment option as there are no appraisals to undergo, no forms to complete and no waiting period for approvals. However, the money spent on financing the project could be earning a higher rate of interest in an investment account and you could actually save money in the long run. In addition, loans might be tax-deductible, whereas home renovations paid for in cash will not have the same benefits. It is best to check the figures with your financial adviser who will be able to assist you in determining whether cash is a good option for you.
HOME IMPROVEMENT LOANS
You can approach your current mortgage lender to ask for a home improvement loan. They are generally willing to consider this if your credit rating is good and your existing mortgage payments are fully paid and up-to-date. This is often the easiest option since you already have credentials with your mortgage provider and a track record.
With this type of loan you have a shorter payback period than a mortgage often for ten years instead of the 30 you might have on your mortgage. The advantage of this is that the loan is cleared sooner and so you will be paying far less interest than if you took a second mortgage.
HOME EQUITY CREDIT
This line of credit is a finance option in the form of revolving credit with the value of your home taken as collateral. The line of credit is set at approximately 75% to 80% of the appraised value of the property after deduction of the value of any mortgage held on the property with a variable interest rate. The amount of credit available will also be determined by your credit history and your ability to repay. Once a line of credit has been set up the funds can be accessed whenever necessary. The drawback to this type of finance for new homeowners is that there may be very little actual equity that has been built up, the interest rates are higher and there is a cost involved in setting it up.
HOME EQUITY LOANS
A Home Equity Loan is also called a Second Mortgage and is basically a fixed term, loan based on the equity of your property. The loan is repaid in monthly installments similar to your primary mortgage. Lending institutions will offer loans of up to 80% of the appraised value of the property. Factors taken into consideration by the financial institution to determine the amount of the loan and the interest rate includes your credit history, the balance on your primary mortgage and your ability to pay the monthly installments.
CASH OUT REFINANCING
If you have owned your home for a long period of time and interest rates were high at the time you purchased it compared to current interest rates, this is a good option. After having your property appraised, a new loan process is undertaken which allows you to pay off your existing mortgage and the balance of the funds can be used to finance your project. This is not a good option if you are planning to move in less than a year or two.
When choosing a finance option for a major home renovation project, it is most important to determine what your budget limitations are and to stay within those limits.
CARRYING OUT A HOME RENOVATION
Once you have your finance in place you will need to find an Auckland home renovations company. There are lots of building firms but for a top quality building job you should consider looking at renovation specialists. Auckland has a few like Repair and Restore Ltd. For a home renovation job they are a good starting point. Give them a call.
Options When Making Major House Renovations
If you want to re-design your home to suit your own needs and tastes, then this article will provide a hint of some of the major renovation options that are available to you. While some of these things may not apply, there are some which will help you to make the best possible choice if you are going to carry out major house renovations.
General guidelines – when making big renovations to your house, always take into account the new dimensions of the rooms and conjoining spaces. If the spaces are going to be restructured, the shape and size is the critical factor. For example many people choose to remove some internal walls. This does two things. Firstly it creates open plan living areas and secondly, it produces surprisingly large amounts of extra useable space.
Consider the time factor when making major house renovations. For example, adding or removing internal walls will drastically increase the completion time, and can lead to delays. These changes will also impact the current fixtures and fittings, as well as the locations of pipes and wires. Before making large changes, consult with an engineer or designer and have the plans drawn up so that there are no unexpected surprises. Also ensure that you have the appropriate consent from the council.
While there are many rooms that can be altered, the major ones are the kitchen and the bathroom. These will be considered next, as they are the primary rooms in the home.
Kitchen renovation – for the majority of families, and indeed couples, the kitchen is the center of the home. It is the area in which most people spend most of their time. In many cases, the kitchen and dining room are linked to provide the main social area of the home. When guests visit, the kitchen will be the entertaining area. As such, the kitchen should be given priority when making renovations.
Some of the top kitchen options to think about are the traditional kitchen, the rustic kitchen, the transitional kitchen, and the contemporary kitchen. Knowing which style you prefer will impact all the other choices you have (such as the units, the surfaces, the flooring, lighting, colour scheme and overall decor). If you like to have social gatherings at your home, then think about combining the kitchen with the dining room area, as this makes a great setting for parties.
Bathroom – the next most important room in the home is the bathroom. Again, there are many options when it comes to the bathroom, and knowing which design style you prefer is the first thing to decide on. Then you have choices such as having a walk-in shower, a large bathtub, under-floor heating, how many washbasins you choose, lighting options, decor and flooring such as ceramic tiled or wooden flooring. Perhaps the most important issue for a bathroom is the ventilation since there is a lot of moisture in the air in these rooms.
In terms of the bathroom, the lighting is one of the most important considerations to make. It will set the tone of the bathroom and allow a certain mood to be set. These days, lots of people like to have the ceiling lights set in so that a relaxing environment is created.
When renovating your home, you need to consider the room dimensions. Will you be making them larger? If so, ensure that this new size is factored into your plans. It is also important that the position of the doors, windows and skylights are determined on the plans as they will affect the floor plan and the location of the facilities. From here, you can think about the fixtures and fittings, and decide on the best locations for them.
Summary – use the ideas and suggestions listed above to make your choices when making major house renovations. Take the time to really consider what design type and style most suits your personality, and then make choices based around this.
Finally, to bring about these renovations, you will need to hire a house renovations company. If you want an Auckland house renovations building firm, you might want to give these guys a look. Repair & Restore has been providing major renovations and restoration work to clients for many years now. In that time they have built up a very strong reputation as this video shows.
Tips For Restoring Old Homes
Restoring an old home is quite a challenging task and is something people under estimate. In an effort to renovate old homes some people do frightening things too. In the name of home improvement, some homeowners tear out important architectural elements and replace them with off the shelf items from the local hardware store. We have all seen tasteless working on wonderfully elegant older homes and villas, which to be honest, do not add the full value potential to the finished result. Below are some of the common mistakes people make for renovating or restoring an older home.
People don’t make wrong decisions on purpose; the problem is that they are not educated on the subject. They may see a DIY show on TV or read an article in a magazine and think they can replicate that in their home. However, unless you are highly skilled at incorporating modern appliances with the classic looks of an old Auckland villa, you are in for a major job.
One of the biggest mistakes that a person of make in the name of restoring old homes is trying to do what is hot right now. They don’t think that what is hot now will not be hot in 10-years to come. The best advice in this regard is to tear out nothing of architectural importance and restore only what is relevant in the moment. This will be easier on your wallet as well as the home’s value in the long run. Some of the basic and cost-saving renovations would be the walk-in-closets, heating & cooling systems and plumbing systems. Walk-in-closets should be added so that they don’t take the character of the house away. Plumbing and heating & cooling systems should help to save energy while being comfortable and convenient at the same time. Below mentioned are some of the most important tips for restoring old homes in a cost-effective way.
Covering old wood floors with a cheaper variety of modern carpet or tile is one of the biggest mistakes carried out by many homeowners. Some even go to the extent of replacing the floors with newer wood. This is a big mistake. Even if you do not like the appearance of the old wood, you can be fairly certain that any potential buyer in the future will be looking at the original features including old wooden floors. The best thing is to patch sections and refinish existing floors in order to save costs in the process. Old tiles should not be removed until they are completely cleaned. This will tell you whether they are usable or not.
If you have a bathroom which has not been modernised, you may want to start thinking about this. A smart and clean bathroom is one of the key selling features for any home, whether the house is new or old. So certainly give this a lot of consideration.
The same applies to a kitchen. It is often said that he kitchen is the biggest selling point. If you are going to replace or even extend your kitchen you want to make the counters look authentic when replacing them. The best thing is to only go for products that were available when the house was built. Wood, classic marble or granite are some options to be considered when replacing the kitchen counters. Stainless steel counter tops and modern laminates do not work if you want to recreate the style and elegance of the bygone days.
Continuing with the kitchen, you can retain the old cabinets, which are mostly made of solid wood and have them resurfaced. Most of the new cabinets are made of MDF board and often look out of place. However, if you work with a skilled designer, they can suggest modern kitchen cabinetry which will look fantastic in a newly renovated kitchen
Most modern aluminium joinery window frames usually look terrible in an old house. Since old windows are generally single paned and may have buckled a bit over the years, they often leak and certainly make a room cold. Old windows have antique value in them but you can have them repaired and re-glazed so that they would work more efficiently. However, a good restoration company can also offer modern windows and doors which will enhance your restored villa.
The electrical circuits will have to be rechecked and most likely need to be replaced with modern wiring. The electrical codes used during the good old days were quite different to the standards that are approved currently. This is one of the most important tasks involved in restoring an old home since old wiring is a major cause of house fire.
The tips above are extremely important for homeowners who are considering of restoring an old home or villa. However, they are generally major projects which are beyond the scope of well-meaning amateurs. If you want a high quality restoration job on your old home, then certainly you should talk to a restoration company in Auckland.
So to avoid having a lower value home and being disappointed with the outcome of your attempts at restoring an old home, it is a much wiser approach to work with house renovations specialists.
Things To Consider When Having A Home Built
While many people make the decision to buy homes that are already built, others prefer to go the custom-built route. There is nothing better than planning a home and having it built right before your very eyes. If you are thinking about having a home built for you, here are several things you may want to consider along the way.
There is nothing worse than living in a home that is prone to drafts. Not only is this uncomfortable, but it hikes up the amount you will end up paying for utilities each month. Do some independent research in order to get a good idea of what your options are and be sure to discuss them with the contractors you hire. This site is the NZ government energywise which gives some detailed information on home insulation. Once everything is all said and done, there will be no way to make changes like that later.
Cheap Is Not Better
Saving money is usually high on the list of priorities, but this should not be the main consideration when you are having a home built. Buying low-quality materials and expecting them to last forever is one of the worst mistakes you could possibly make. It is a better idea to invest in better quality materials since this means you will have to have fewer repairs done in the future.
Think About Your Laundry
If you are one of those people who washes clothes every week, it may not be such a bad idea to have the laundry room on the bottom floor of the house. This is not a wise idea if you have to do laundry more often. It can be a huge pain lugging piles of laundry up and down stairs, so you may want to put the laundry room in the middle of the house in that case. If the plans you are working on cannot accommodate a laundry room near the bedrooms, you may want to consider having a dumbwaiter installed to make things easier.
Be Careful About Who You Hire
One thing that many people do is depend on friends and loved ones for building contractor recommendations. While there is nothing wrong with that on some levels, it only works if the people you ask have the same taste as you. Every home builder has a style that can be seen if you look at any of the structures they have built. That is why seeing pictures of houses they have done would probably be a better bet. And just like wit the materials, hiring the cheapest builder is not often a good idea. You want a good quality, reliable house builder who will complete your job on budget, on time and to the highest standards.
Building For The Future
Yes, you may have a small family now and you think that having a modest home built is the best idea, but have you taken into account the fact that you may want to expand one day? You don’t want to wake up in your home one day and realise that there is a serious lack of space. It is always a great idea to give yourself a bit more space than you need to avoid feeling overcrowded at some point. Besides, you need to have an eye on the future and how easy it might be to sell your home when you want to move on. These days, families expect four bedrooms and at least two bathrooms. So while it might be a bit cheaper at the moment, the additional costs are often not a great deal more wince you have the building crew on site. Plus having the work done now will save further disruption down the track.
This is one area of building a home that needs the most planning and attention. Making sure that the house flows well is very important, especially since no one wants to feel uncomfortable or hassled in their own home. For example, do you want to have the kitchen far away from the garage and all of the doors? This means that you will have to go through changes when it is time to lug in the groceries. Planning ahead will eliminate these types of issues.
Finding a Builder
There are dozens of home builders; Auckland has more than anywhere so picking one is not an easy task. But it is the most important part of any new home project. The wrong builder will cause you grief and distress plus they will probably end up costing you far more than you budgeted. So make sure you select a reliable home builder such as Repair and Restore. Their reputation is very high among some well known clients. This video demonstrates the point.
If you are interested in having a home built, you should consider all of this information first. It can lead to you making wiser choices when it comes to planning your dream home.