Home Renovation Loans272 views
It becomes increasingly difficult for people to think of renovating their old homes as expenses are growing at a faster pace. The rising prices of essential items like food and clothes put heavy pressure on one's pocket and thus prevent spending on the home renovation. But in order to maintain the social esteem, it is imperative to do the same. Most of the times you end up spending more than the budget you have prepared. But there are many methods to reduce the cost of home renovation. Today, we are going to discuss some smart ways to renovate kitchen at your budget.
Strategically divide expenses for remodelling of your kitchen
Dividing the expenses strategically will help you renovate your kitchen at the fixed budget. Firstly, you must focus to divide the remodelling work into different parts. Let's see how you can break the expenses on an average.
- Allocate 35% of your budget on kitchen cabinets
- Spend 20% on purchase and modification of kitchen appliances
- Fix 20% on labour services
- Spend 10% to clean, modify and replace windows
- Keep 3% towards fitting
- Fix 5% on fixtures
- Spend 7% on miscellaneous expenses
Assess resale value of your house
You may avoid going beyond your budget to renovate your kitchen by deciding on the time for which you are going to stay in your existing house. If you are not going to stay for long, then it is not plausible to invest heavily on remodelling your kitchen. So, you need to ascertain the resale value of the home prior to investing in renovation. If your neighbourhood represents a majority of middle class people, then it makes no point to spend big on building the best-in-class kitchen as you may find hard to get much return on the investment.
Fix your priorities
You need to be smart enough to believe that you can't do everything at one place as doing the same can impair you financially and disturb your plans. Go about the task of prioritizing the list of equipment that you are going to add in your kitchen. Replace the old faucet with a new one in the kitchen. Deep clean the kitchen sinks and countertops. Using these alternatives will significantly reduce the cost of remodelling your kitchen.
Ready with additional funds
Before you start renovating your kitchen, you may face a lot of cockroaches within the walls. You may have to take help of a professional pest control service to prevent infection, which could arise because of the insects, from affecting your health. You may find electrical wire in the kitchen as an outdated one. Further, there can be dampness in the floor under the kitchen sink due to some leakage in the pipe. This could let your budget go out of control and the best way to deal with such situation is by having additional funds.
Efficient remodelling plans
It may happen that you go very ambitiously on revamping your kitchen and mess with the budget quite badly. So it is advisable to make proper remodelling plans to keep your budget in check. You must plan on arranging the investments that you have to make initially, such as upfront cost of materials. There are several ways by which you can pay for the remodelling of kitchen. One way that can adopt is the home equity loans as they are eligible for exemption under income tax. Other options that you can avail include personal loans, refinancing, procuring loan against retirement or insurance plan.
Borrowing money at low interest rate better than consuming surplus cash for renovation
Don't dispense your own money for the renovation of kitchen even if you have the surplus amount. Smarter move would be to take loan at a low interest rate rather than affecting your cash balance. The excess cash reserves can be used to take care of family expenses, which you can't ignore.
Avoid eating in expensive restaurants
Spending on anything new requires an individual to compromise a little on expensive affairs. And eating in expensive restaurants is no exception. So you can avoid going there and use the savings to renovate your kitchen in the best possible manner.
Don't let your expenses go out of control
So often people encounter the situation of running out of money in between the renovation work. So you better keep a check on the expenses while you renovate your kitchen.
Do some work on your own
In order to not let your budget go out of control, you can look at fixing out cleaning and maintenance work on your own if you are adept at doing these things.
Don't get too influenced by kitchen design in neighbourhood
It always remains a temptation to replicate the kitchen design of your neighbours. But avoid doing it as you may get deviated from your project work. Your spouse may tempt you to do extra in kitchen. But say no to them politely and save yourself from unnecessary costs.