PAYING FOR THE RENOVATION
Posted by Mary Caraccioli | Filed under housing
THE NEW YEAR IS A TIME FOR A FRESH START. BECAUSE I AM TRAPPED INDOORS, THIS IS ALSO THE TIME OF YEAR I WANT TO TAKE A WRECKING BALL TO SOME OF MY MORE “TIRED” LOOKING ROOMS AND GIVE THEM A MAKEOVER. IF YOU CATCH YOURSELF FEELING THE SAME WAY- STOP! I HAVE A FEW TIPS YOU SHOULD HEAR BEFORE YOU SWING THAT SLEDGEHAMMER.
GET A REAL BUDGET AND SPENDING PLAN TOGETHER FOR YOUR PROJECT BEFORE YOU DO ANY DEMO OR BUY A SINGLE NAIL. GET ESTIMATES FRIOM THE FOLKS WHO WILL DO THE JOB AND ASK THEM WHAT SOME OF THE SURPRISES ON A JOB LIKE THIS COULD BE. THEN FIGURE OUT HOW YOU ARE GOING TO PAY FOR IT.
LET’S START WITH A DON’T. DO NOT USE CREDIT CARDS OR BORROW FROM YOUR RETIREMENT FUND TO PAY FOR A RENOVATION—UNLESS THE REPAIRS ARE FOR SAFETY REASONS.
DO CHECK TO SEE IF YOUR STATE OFFERS LOW INTEREST LOANS FOR UPGRADES THAT MAKE YORU HOME MORE ENERGY EFFICIENT. THESE ARE UPGRADES THAT PAY YOU BACK EACH MONTH BY WAY OF LOWER UTLITY BILLS.
DON’T USE YOUR HOME’S EQUITY TO DO A RENOVATION—UNLESS YOU’VE DONE A REAL BUSINESS PLAN TO SEE IF THE INVESTMENT MAKES LONG-TERM FINANCIAL SENSE. THE DAYS OF USING A HOME AS A PIGGY BANKS ARE OVER—FOR GOOD REASON! IF YOU ABSOLUTELY HAVE TO FINANCE A CHANGE THEN LOOK INTO THESE TYPES OF LOANS THAT DON’T GET A LOT OF ATTENTION.
203K’S ARE “F-H-A HOME LOANS” FOR REHABBING FIXER-UPPERS. http://www.fhainfo.com/fha203k.htm
ANOTHER GOVERNMENT BACKED LOAN—CALLED A TITLE 1 LOAN MAY BE USED FOR ALTERATIONS, REPAIR AND SITE IMPROVEMENTS. http://www.hud.gov/offices/hsg/sfh/title/ti_abou.cfm
AND FINALLY DO LOOK INTO BARTERING— CHECK OUT SITES LIKE www.timebanks.org TO LEARN MORE ON HOW YOU CAN SWAP SERVICES AND SAVE A FORTUNE.
Tags: money, RENOVATION
