Thinking about upgrading your home? Why renovations might be the better choice from a financing perspective!
Story Time: Why We Chose Renovation Over Building New
When we renovated our 1965 home, we gutted it to the studs. Many asked why we didn’t just bulldoze and start anew. Wouldn’t that be easier and cheaper? Maybe, but what can you afford?
In a consumer-driven economy, we’re constantly encouraged to buy new—shoes, cars, homes. But did previous generations buy homes for profit, or for a place to live and raise a family? Homes were not seen as commodities but as spaces for life.
Keeping up with the Joneses can make us lose sight of what we need versus what we think we should have. I believe our built spaces should enrich our lives. Poorly designed spaces lead to poor experiences, while quality spaces enhance our lives, fading into the background when we focus on what truly matters.
Building new can be great, but renovations have their own benefits, especially from a financing perspective:
1. Lower Loan Amount: Renovation projects typically require smaller, more affordable loans.
2. Equity Utilization: Use existing home equity for renovations, often with better terms than new construction loans.
3. Lower Interest Rates: Renovation loans generally have lower rates, as they’re seen as less risky.
4. Shorter Loan Terms: Renovation loans can be paid off quicker, reducing total interest.
5. Easier Approval Process: Obtaining renovation loans is often less complex and stringent.
6. Incremental Improvements: Renovate in stages, borrowing smaller amounts as needed.
7. Increased Property Value: Renovations can immediately boost your home’s market value.
8. Government Incentives: Take advantage of grants and programs for energy-efficient upgrades.
Reconsidered old spaces can create structure in the design process by limiting you to what the space should be, eliminating the strain of societal wants. Old spaces can become new again, enriching our lives and experiences.
Ready to renovate? Upgrade your home smartly and save money!