Reconstructing your home or renovating it, or even if you are planning for a home extension, the project can be an expensive one. Not everyone has this much cash in hand to start the project instantly. Well, banks and financial institutions offer monetary assistance for the home extension project. If you are planning an extension of your home and want to know more about the financial assistance options available in the market, this blog will help you find the best ones and assist in making the right choice.
Key Benefits Of Home Extension:
Value addition: One of the reasons for a home extension is that it adds value to the property. Also, if there is a requirement for more space in the house, you can opt for an extension of your premises. A good architectural firm will be helpful in this. Extension of the house enhances the visual appeal of your house, and it also adds to the property value. In case you plan to sell the house at a later point, you are bound to get better returns on it.
Gives a new look to your house: If you are planning to renovate your house, but don’t want to take up the charge of remodeling the entire space, then house extension is a good choice. You can easily modernist your house's look and utilize the unused spaces into more functional ones.
Design that matches your requirement: Everyone wants to create a space of their own. You can easily use the available space and convert it into something more useful. Also, house extensions give you the leverage to design the house as per your requirement. You can also hire an interior designer to give it a posher look.
While all this looks lucrative, one has to spend a good amount of money on it. If you haven’t saved that amount of money or are not willing to dig into your savings, you always have the option to finance. The following segment highlights the key financial assistance you can scout through when going ahead with a house extension project.
Options to finance house extension project
Construction loans: These loans help you draw funds to be paid to the builder who will be handling the work of extension or construction. The fund is drawn down to a registered and insured builder.
Home equity loans: If you have a mortgage loan and have been paying it off consistently, it will create good financial credit worthiness. Also, the mortgage value reduces with time, and so you may opt for the home equity loan. The loan amount depends on your house's worth and how much is left with the bank. The borrower can get the loan on the amount left between the two.
Lines of credit: It is like a credit card that comes at a lower interest rate than most. It allows you to loan money up to a certain limit.
Personal loans: One of the easiest ways to get money for a house extension is a personal loan. It is easy to avail of the loan. But you will be charged a higher interest rate on this. Hence, you must calculate and prepare a budget before applying for a personal loan.
Refinancing: Many banks also approve of a new loan in case you don’t have a redraw facility on the present loan. You can either ask a lender for this or choose another financial institution to provide you with the refinancing option.
Concluding thoughts
A home extension is a good way to enhance the property value and also uplift its curb appeal. You can contact an architect or interior designer to create the blueprint. We have also discussed the best financing options in this blog. Your home is a reflection of your lifestyle and personality. Make sure that every renovation work or remodeling that you do is in sync with the theme of your house.
Comments