Best Ways to Finance a Renovation

A home renovation is an excellent idea if you are looking to freshen up your home and style. However, it is also a great investment. While not all renovations are equal, putting some extra work into your home can pay out big time. With that said, renovations are expensive in upfront costs, often deterring homeowners from moving forward – even with the prospect of a return on investment. Here are some ways to finance a renovation, and tips on getting the most out of your investment.

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1. Bank Loan

Before going in to ask for a loan from your bank, you are going to need to make sure you have an idea of exactly how much money you are going to need. Whether you will be supplementing what you already have saved up, or need a loan to finance the entire renovation, ensure that you know what the costs are going to be. Working with a reliable and trustworthy design and contracting team will safeguard that you get an honest quote. A bank loan is probably your best option for larger scale projects, and it allows you to pay off your debts on your own time.

2. Credit Cards (With a Low Interest Rate)

This is probably only a viable option for people with a) good credit and b) a relatively low-cost renovation project.  If you can get a new credit card with 0% interest for the first however many months, you can use this time to pay off your debts with absolutely no interest. However, you will be limited to whatever the limit is on the credit card, so be sure to have money saved or an additional loan to accommodate the renovation in its entirety.

3. Renovate Rooms with High ROI

Any home renovation is going to likely add value to your home, however the bathroom and kitchen are going to give you a substantially higher ROI. For example, the average return on investment for a kitchen remodel is a whopping 70%.  This means you will be able to get back 70% of your investment in remodeling your bathroom when you are ready to sell. So, even if you are doing an entire home renovation, spend a good chunk of your budget on bathrooms and the kitchen for the highest ROI.

Lastly, make sure you choose a design center that will take care of your project from conception to completion. At newline Design Center, we will be able to handle your entire project, rather than you going through several different suppliers and contractors. Newline Design Center is Illinois’ trusted home remodel and renovation company. Come visit our Orland Park, IL showroom today to see the possibilities for your home, and to schedule a free design consultation!