Browse Forums Renovation + Home Improvement 1 Mar 21, 2011 9:53 am Hi first time poster here. Need some help on what to do with paying for some renovations we are looking at doing. We have a large kitchen which we want to make look abit more modern, currently it's an apricot pink. Anyway I had a quote for 10K to replace the kitchen and am yet to get a quote from my brother in law who is a cabinet maker just to replace the cupboards and appliances so am thinking it will be alittle cheaper. With the kitchen we are looking at tiling the house, spruiking up the bathroom and just try and get rid of the apricot pink that is throughout the house. My wife and I are having a dilemma in regards to how to pay for it. We have been in the house for 2 years and currently have put money onto the homeloan and have a re-draw of 27K. This has helped fight off the interest rate rises. But not sure if we should use this money to pay for everything thus leaving us with not much after everything is done plus we have just had our first baby so feel it's good to keep cash aside for schooling etc etc. So for those who have renovated, bee keen to hear your thoughts on the best way to finance these renovations. Cheers. Re: Renovation Finance advice. 2Mar 21, 2011 11:59 am In lieu of cash, using your redraw sounds like the best option because the interest rate is the lowest you'll get vs credit card or personal loan. You could also ask the bank to value your house to determine if you have an equity you can draw on. I think you need to decide what is more valuable to you, having cash set aside for emergencies or a new kitchen/bathroom. Good luck! Re: Renovation Finance advice. 3Mar 24, 2011 8:03 am Thanks for your reply. Yeah it's a tough one, wether to depart with alot of cash or not. It would be good knowing that I owe nothing but since we have moved to a single income after having a baby it makes it hard to save the money again whereas previously it was easy to do. If we were both working then I'd have no problem in paying cash. Was looking into Home Equity Loans, we currently have around $140'000 in equity so I'm sure I could be able to at least get 10K if I needed. Not sure on how much repayments would be so will have to talk to the bank. I could always borrow half and pay half in cash and that would be sufficient I think. Thanks for your help. Cheers Re: Renovation Finance advice. 5Apr 06, 2011 6:32 am iknowboonie In lieu of cash, using your redraw sounds like the best option because the interest rate is the lowest you'll get vs credit card or personal loan. Whilst of course the rate is low, the amount you will repay over the years will be substantially more than you would pay on a personal loan with a higher rate over a smaller period of time. Hence the reason why banks encourage people to re-draw or add to their home loans. Re: Renovation Finance advice. 6Apr 06, 2011 5:48 pm I reckon there's a few things you could do... 1. Do what you can to improve without borrowing. Paint doesn't cost a lot and you can do it yourself. Do a few small things to get rid of the apricot. 2. Redraw to do the kitchen since you can get a good deal. Leave yourself $10k on the mortgage for emergencies. (You'll spend far more time in the kitchen than the bathroom.) 3. Wait a while. I know what it's like when you've just had a kid and you're always home and surrounded by the apricot (or in my case wood panelling) but you've got this vision for how it could be improved and you just want it now! But it's a lot of pressure living on a single income, and you're probably exhausted from sleepless nights. It's a fun but stressful time in your life so maybe it's worth waiting till you can afford to do your whole place properly. Enjoy having a kid, ignore the apricot as best you can, and think how much more fun it will be to one day do your house the way you really want rather than settling for a cheap fix now. It's a cliche, but true, that time flies when your kids are young so enjoy it while you can and subscribe to some home magazines so you can dream of how your house could be in a few years. you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 57350 Hello Josh, This is Irving from PRIMA, we are a manufacturer of the staircase, railings, kitchen cabinets, windows, doors from China. If you have requirement to purchase… 0 5458 Coming back to your old stomping grounds, huh? Renovations on a budget can be quite the journey. It's like giving your house a new lease on life. The twist of not knowing… 1 3477 |