Whether your motivation is to add value to your property or to add a touch of your personality to the home, renovations are expensive and debt often follows.

A recent survey found that only 27 per cent of homeowners think refinancing their home loan to renovate is a feasible option to raise funds for the next big step. In this survey, 93 per cent of homeowners who refinanced to renovate said they had concerns over whether they would be able to afford the repayments, and whether the proposed renovation would add value to the property.

While I can’t assist you with forecasts on future property values, I can help you reassess your current financial position, run through your plans and future payments, and assist you in deciding if you can afford to take on more debt.

Laying the foundations

The first step is to investigate how much you need to borrow. Work out the specifics of your renovation, what the cost to renovate is and how much you are eligible to borrow. If renovations are likely to take over your living quarters, you may also need to consider the additional cost of accommodation for the renovation period. This is another cost factor into your budget unless you have generous family close by.

Getting bang for your buck

If you are trying to add value to a house to resell it, once you decide to renovate it is important to look at the rooms and areas that will add the most value.

To make sure you get a great outcome, contact me on 0402 203 303 or email me at rob@rwfs.com.au