POLL: Would short-term financing options help with renovation costs?

last year

Willarong Rd | CARINGBAH SOUTH · More Info

For homeowners considering a renovation, would you consider securing a short-term loan to help you complete your renovation project?

Yes

Other, tell us below.

Featured Answer

Suzanne Melton

last year

We borrowed from a ELoC for a new roof and siding. When that was paid off, we borrowed for an asphalt driveway. All three were done by professionals.

For anything that we can do ourselves, we do ourselves and pay cash for materials.

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Comments (12)

PRO
Patricia Colwell Consulting
last year
Usually my clients get a line of credit from thier mortgage company or bank Low interest and can be paid off over a long time if neccessary
Toronto Veterinarian
last year
It depends on whether the renovations are necessary (structural risks), functional (things don't work as well as I'd like) or just cosmetic. Yes in the first, maybe for the second, not for the third.
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PRO
BeverlyFLADeziner
last year
HELOC OR HEA.
arcy_gw
last year
Living within your means is a good thing!!
PRO
Diana Bier Interiors, LLC
last year
The answer is totally dependent on your personal financial situation, and what renovations are planned, as Toronto Vet said previously.

Borrowing money doesn't necessarily indicate that you are not "living within your means." It's possible to borrow money at a lower rate of interest than you are earning on your assets, which is a very smart thing to do. It's called arbitrage.
lazidazi
last year
Living below your means is the smartest approach.

Never put yourself in debt unless there is no other option. How necessary are these kitchen renovations.

Best rule of thumb: If you haven't got the cash to pay outright, you can't afford it, don't buy.
terrib962
last year
Only if necessary, as other have stated - like for a leaking roof. Best not to live above your means. If you cannot spare the funds from your savings or if you have no savings, best not to get a loan. Or DIY and save money. Check out salvage stores for affordable materials.
Jamie Watkins
last year
If you can pay it off quickly get a 0% introductory offer from a credit card. Just make sure to pay it off before interest starts. That's what I did with my rental house. Free money for 15 months.
PRO
Diana Bier Interiors, LLC
last year
And if you don't pay it off in 15 months, you get SLAMMED with interest charges of over 20% on a credit card. Probably the worst way to borrow money.
lazidazi
last year
last modified: last year
Let's be clear. The question posed is about *renovations*, not about repairs. (renders Toronto's comment moot)

Need versus want.

Obviously, if the roof is leaking, the plumbing is leaking, or your HVAC dies, these can be seen as needed *repairs*, a different classification from desired (would-like-to-have) renovations.
Toronto Veterinarian
last year
" not about repairs. (renders Toronto's comment moot) "

Not really.....Renovations that replace something that is at risk of failing - or has failed - are different than simply repairing something. Facing an old and dysfunctional shower, you can have the plumbing repaired and the shower head replaced - which will improve it to some degree - or you can renovate the bathroom in a way to increase function as well as appearance. Both will result in a functional shower, but renovations will allow for a bathroom with increased functionality. Making the repairs a part of the renovation.