7 Ways to Cover Urgent Home Improvements Expenses
By: John Garcia | Date Posted: December 20, 2021
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Your water heater will go out after some time. Emergency home improvement expenses never come at a good time. Your water heater is the least of your concerns. Spend a few hundred dollars, and youâre back to taking a shower with hot water.
But not all home improvement expenses are affordable. A new furnace, air conditioning unit, or roof repairs can have a huge impact on your monthly budget. So, how do you finance home improvement projects?
Tips for Financing Urgent Home Repairs
When urgent repairs are needed, homeowners are left with limited options. You can either take out a quick lightning loan or break into your savings. Nevertheless, where there is a will, thereâs a way.
Tap Into Your Homeâs Value
You can use the Home equity line of credit to tap into the value of your home. Itâs an excellent option to pay for urgent home improvement expenses or to cover unexpected home repair costs.
But a Home equity line of credit can put your house at risk if you donât repay your loan on time. So spend your HELOC funds wisely and pay promptly.
Pay With Your Credit Card
That pretty much sums up how Australians plan urgent home improvements. But think twice before using your credit card. Consider the cost of repairs before tapping the plastic. Because if your credit card limit canât cover the cost, youâll need to take another line of credit which means double the interest payable.
The best way to go about this is to keep your credit card in your pocket and ask around for repair costs. Ask people who have been through the same situation and take an exact measurement of the incurred expenses. Thatâll tell you whether you should or shouldnât use your credit card.
Take a Quick Home Improvement Loan
Quick home improvement loans are fast and unsecured. Hence, you can hire a repair agency when you know exactly how much itâll cost. Quick loan amounts start from $1000 to $5000. And thatâs enough for roof repairs and buying a new AC.
Check Your Home Insurance
Check your home insurance for coverage against urgent home repairs. Your insurance might cover some if not all the expenses that incur in home improvements. You might not be able to see the damage your house sustained in a storm or a pipe burst, but a qualified inspector will find it for sure.
Take a Personal Loan
Personal loans are a good option because of their versatility. The borrower can use the money for anything, and the bank wonât ask any questions. In case of urgent repairs, you can request a personal loan.
Take a personal loan for the full amount of repairs, even if you have some money on the side because a higher amount means a longer payment duration. You can use the rest of the money from your personal loan to buy new furniture or go on a family vacation.
Use Your Savings
This is one of the safest options in the short run, but you might face its repercussions in the future. Any amount you take out of your savings has to be added back, which means if you incur a medical expense in the future and have to pay out of pocket, you wonât have many options.
Savings are to be set aside for extreme situations â especially when you donât have any other option. So if your loan request is rejected and no one is willing to lend you money, you can dip into your savings.
Borrow From Friends
Instead of paying interest charges, you can borrow from your friends or family members. However, donât borrow the full amount from a single person, whether thatâs your sibling or cousin.
Split the amount into equal portions because this wonât put a lot of financial stress on the people you borrow from. But stick between asking from 2-3 people max.
The Bottom Line
Leaking pipes, seepage, and other home improvement projects are the bearers of bad news. These expenses occur when you donât have enough finances to handle them. However, these repairs are necessary, and delaying them will result in a higher cost of repairs.
So, take out a quick loan or personal loan to get the work done when itâs needed. You can also borrow from your friends and family members. Youâll go back a few months or a year on your savings due to loan payments, but youâll have a safe place to live where you can earn and get your savings back on track.
How to save money on a renovation
A renovation that comes in under budget is everyoneâs dream. Even when youâve followed instructions and factored in unforeseen expenses, the reality is often quite different. Research, clever planning, and good organization can cut costs without compromising your dream renovation.
Reducing the number of plumbing changes
Make sure bathroom and kitchen layouts are similar because moving plumbing can be expensive as it involves removing wall linings and making holes in flooring. Combine the toilet, laundry, and bathrooms. Keep the number of moves to a minimum when repositioning something.
Maintain the same footprint
The most cost-effective way to renovate an existing building is to build within its footprint. Check the foundations of a property before buying it if you plan to extend. They are expensive to replace.
Instead of replacing floors, paint them
Until you can afford better flooring, paint floor surfaces with water-based enamel if the floors are in poor condition or only made of particleboard.
Preparation is key
Ensure that you know exactly what you want and how much it will cost before the builders show up at the house. Make sure you visit hardware stores and buildersâ depots to get an idea of what you want.
Ensure that you inform your builders, electricians, and other contractors precisely about these points to prevent problems later on. If you donât inform the electrician you want dimmer lights; you will have to redo the wiring after lining the walls.
Thank you for reading!
