Your home is one of the biggest investments you’ll ever make – so it only makes sense that you’d want to keep it in great condition. However, home renovations can take a heavy hit on your wallet. To help smooth along your home improvements, here are three renovation budgeting tips you might not have considered.
1. Don’t Waste Your DIY Efforts
DIY home improvements can be rewarding in terms of saving money and even having a bit of fun – but don’t overestimate the amount of work they require. If you have any doubts, spring for an expert, because a botched renovation could mean more money spent in the long run.
2. Prepare for Surprises
When budgeting for renovations to your home, don’t expect that everything will go smoothly. You might uncover water damage, or realize that measurements were bungled somewhere along the way. It’s generally a good idea to allocate 20 percent of your home improvement budget for surprise expenses.
3. Home Equity
If you’re struggling to pay for renovations out-of-pocket, consider tapping into your home equity to access low-cost funds for home improvement. A home equity loan can offer a lower interest rate than what you’d pay with a credit card or personal loan, and the interest is usually tax deductible to further lower the cost of borrowing.