Our new adviser Claire shares some tips on renovating...
With the property market booming in Hamilton, plenty of homeowners are benefiting from Capital gain in their property's value over the past 12 months. My husband Mike and I purchased our home in Glenview 18 months ago, and it's in desperate need of freshening up. While we are not looking to sell our property anytime in the near future, renovating appealed to us as a way to capitalise on the increase in property values, as well as enjoy some functional upgrades to our home.
For anyone in this position, particularly those who purchased over the past few years and have built up some equity in their property, renovations are a really good way to immediately add value. In our experience working through a number of different projects with our clients, here are three tips to pain-free renovating;
1. Get some quotes. Unless you are a qualified builder, it's inevitable you'll need some help to complete any upgrades beyond painting a wall. It's always good to get a really clear idea of what everything is going to cost you, so you can stick to a budget and not find you have any scary surprises when the time comes to pay the bill.
2. Finalise your budget. This is one of the most important things, and one which many people overlook. Bear in mind if you change the specifications or materials you originally had quoted, the price will likely change, so discuss with your tradesperson how each change will affect the final price. Higher quality materials or trickier work will mean an increased cost.
3. Secure funding. This is where we come in! For many banks, we can simply submit a top up application for your current home loan. We can guide you through this, and normally can have an answer for you in a few days. We like to provide a personal service, so talking to us will clear up some of these questions and give you a really good idea of how much you can borrow.
What structure is going to be best for my new lending?
1. Would a Revolving Credit suit you? This is where your funds can be drawn out progressively, and you only pay interest on what you use. It's particularly good for those who are doing DIY over a period of time, and may not require all the funds initially. Adam wrote a great blog on how revolving credits can work well for you here. To give an idea of what this may cost you, for a top up of $50K on a floating rate of around 5.25% over a 30 year loan term, you'd be looking at $64 / week, which is a bit less scary than many might think.
2. Could you fix the new loan to merge with other loans and keep your interest cost down? Fixed rates are nearly always lower than floating rates, and fixing a top up in with your larger home loan might be a really good option for you.
3. Review your overall lending – this is a great time to have a look at all your lending to ensure the structure and rates are the best they can be. We have a handy tool on our website to help with this. Head to www.mymortgage.co.nz and click on the green "My Best Mortgage" button. Put in your details and we'll get back to you within 24 hours with a plan detailing how your lending structure and rates could be improved.
If you're thinking of renovating, or even if you'd just like some advice, talk to us. We can sit down with you and talk through your options, make sure you have the right structure in place, and help you gain funding for your next renovation project.
Look forward to hearing from you soon,
Claire, Adam & the My Mortgage Team
For anyone in this position, particularly those who purchased over the past few years and have built up some equity in their property, renovations are a really good way to immediately add value. In our experience working through a number of different projects with our clients, here are three tips to pain-free renovating;
1. Get some quotes. Unless you are a qualified builder, it's inevitable you'll need some help to complete any upgrades beyond painting a wall. It's always good to get a really clear idea of what everything is going to cost you, so you can stick to a budget and not find you have any scary surprises when the time comes to pay the bill.
2. Finalise your budget. This is one of the most important things, and one which many people overlook. Bear in mind if you change the specifications or materials you originally had quoted, the price will likely change, so discuss with your tradesperson how each change will affect the final price. Higher quality materials or trickier work will mean an increased cost.
3. Secure funding. This is where we come in! For many banks, we can simply submit a top up application for your current home loan. We can guide you through this, and normally can have an answer for you in a few days. We like to provide a personal service, so talking to us will clear up some of these questions and give you a really good idea of how much you can borrow.
What structure is going to be best for my new lending?
1. Would a Revolving Credit suit you? This is where your funds can be drawn out progressively, and you only pay interest on what you use. It's particularly good for those who are doing DIY over a period of time, and may not require all the funds initially. Adam wrote a great blog on how revolving credits can work well for you here. To give an idea of what this may cost you, for a top up of $50K on a floating rate of around 5.25% over a 30 year loan term, you'd be looking at $64 / week, which is a bit less scary than many might think.
2. Could you fix the new loan to merge with other loans and keep your interest cost down? Fixed rates are nearly always lower than floating rates, and fixing a top up in with your larger home loan might be a really good option for you.
3. Review your overall lending – this is a great time to have a look at all your lending to ensure the structure and rates are the best they can be. We have a handy tool on our website to help with this. Head to www.mymortgage.co.nz and click on the green "My Best Mortgage" button. Put in your details and we'll get back to you within 24 hours with a plan detailing how your lending structure and rates could be improved.
If you're thinking of renovating, or even if you'd just like some advice, talk to us. We can sit down with you and talk through your options, make sure you have the right structure in place, and help you gain funding for your next renovation project.
Look forward to hearing from you soon,
Claire, Adam & the My Mortgage Team