Home improvement is a goal for many of us. Whether it’s essential repairs, or something altogether more creative, there always seems to be something worth changing or fixing up. Home improvements cost money – however, the value that they can add to a property often more than justifies the initial expense. If you’re planning to improve the property you live in, and you don’t have great wealth with which to do it, how are you going to pay for it?
Funding home improvements
Repainting a room (£0 – £500)
Depending on the size of the room this is a job that could very easily be taken on by a homeowner – i.e. with no cost incurred at all. However, if you’re very busy or not that keen to pick up a paintbrush then it can be done for a couple of hundred pounds.
How do you pay for it? In terms of financing this minor home improvement – savings, a credit card or a payday loan are all small, simple sources of cash.
Fitting double glazing (£2,000 – £5,500)
Double-glazing is the kind of home improvement that makes all the difference in the winter months when cold draughts are common in the UK. Getting a home fitted with double-glazing will make it more energy-efficient, as well as more comfortable to occupy. Costs start at around £2,000 for four windows, up to £5,000+ for buildings with 10 or more windows. However, double-glazing can also save in the region of £175 per year in energy bills, which is a factor to bear in mind.
How do you pay for it? The easiest option is a short term loan, which allows you to choose a relatively low figure and to repay this over a longer period of time.
Creating an extra bathroom (£2,500 – £6,000)
An extra bathroom doesn’t just reduce queuing times in the mornings – according to Movewithus it can also increase property value by around 6%. The cost will depend on the location of the bathroom, as well as the design that you opt for and the fittings and furnishings you want to go in it.
How do you pay for it? Home improvement loans provide a simple and flexible way to finance this kind of internal upgrade to your property. The range of financing on offer means that they’re an option whether you’re looking for a low key uplift or a full renovation.
Fitting a new kitchen (£6,000+)
Most new kitchens don’t come in under £6,000 price-wise – and it’s very easy to spend a lot more than this if you’re looking for high-end features and finishes. However, a new kitchen is a major selling point, particularly if you’re keen to put your property on the market in the near future. A brand new kitchen can add roughly 6% to the value of your home and will also be a pleasure to use on a daily basis.
How do you pay for it? Unsecured personal loans are a simple option for covering the cost of fitting a new kitchen. With loans of anywhere between £1,000 and £25,000 – and some attractively low-interest rates right now – finding the financing is fairly simple.
A loft conversion (£15,000 – £40,000+)
A loft conversion is a real investment in your property, as it effectively gives it another floor of living or working space. That also makes it, perhaps unsurprisingly, one of the most expensive options for home improvement. Having said that, it will add a huge 10% to the value of most homes, which is an impressive increase in value even if you’re not yet ready to sell.
How do you pay for it? Homeowner loans are a great option if you’re looking to make an investment like this. This type of financing is secured against the property itself so is ideal for home improvements that are designed to seriously boost value.
An extension (£7,000 – £50,000+)
Space is at a premium in the UK property market and so if you have the option to increase the square footage available to you it’s often a good idea to take it. Extensions can start at around £7,000 for a one-storey construction, increasing to £50,000 and beyond if you’re looking to extend across multiple floors.
How do you pay for it? The average secured loan is around £28,000 so if you’re planning an extension that requires a budget at around this price that’s often a good choice. If your designs are going to need more serious money then you might want to consider a remortgage or a combination of financing.
Amanda Gillam is Solution Loans's General Manager and has been since 2009. She is also a prolific writer on personal finance issues, and has been quoted numerous times in articles published on 3rd party websites and in press releases. Her...Read more about Amanda Gillam