New homeowners love to renovate their newly purchased property. A report by real estate industry investors Angi found that 46% of new homeowners plan to renovate within the first year of home ownership, showing just how high the level of appetite is for renovations and makeovers on newly purchased properties. For such homeowners, it can be difficult to balance the budget between what you spend on the property and what you spend on its makeover. Making the right choice starts at step one – the mortgage.
A Good Deal
Getting a good deal on a mortgage can help the homeowner to have more free money for renovation. That starts with the lender itself and the amount of money offered as deposit. Offering 20% or more will help homeowners to avoid PMI – private mortgage insurance – which will save a lot of money for renovation. Secondly, borrowers need to look online as well as in-person for their product. As Time magazine noted, online lenders often offer a lower rate when it comes to the various fees and charges attached to the brokering process – but can have other pitfalls. Choose wisely.
Weighing Up the Project
Many homeowners go over-the-top during potential renovations and end up overdoing it. Much of the $400m that Harvard estimate is spent on home renovations could be trimmed back or tightened up if homeowners curb their ambition somewhat. Be realistic in planning, and be aware of constraints. This is especially relevant right now, as there are clear and long-term issues in the world of construction and remodeling.
Reading the News
Even with every other aspect of the renovation ready to go, homeowners must be wary of current conditions. USA Today notes that there are serious material shortages across the USA, with framing lumber and appliances in particularly short supply – and this will continue through 2022. Putting the money out for contractors and tendering is going to simply be a waste of time if the materials aren’t available. Homeowners should do their research on the current market state before getting on.
Aside from that, renovation can almost be fun. It’s a great way to instantly put a personal touch on a property and make it suitable for years of living, whether that’s solo or with the family. Diligence in the planning process will make sure the makeover is a smooth one.
