It’s a sellers’ market in Louisville right now. And that’s an incredible understatement. Thanks to historically low housing stock house hunters are fighting over every new listing. If your budget is tight or if you’re looking for something rare, you might want to re-think things. Because right now buying a home that needs renovating makes sense in Louisville, Kentucky.
How to Finance a Remodel
There are a few ways you can finance a remodel. If you have enough savings, you can choose to allocate some of it for the downpayment and some for the home improvements. Even if you don’t have enough put by, you could go for a bigger mortgage to cover both the sale price and the renovation costs.
Alternatively, you can take out a loan after you move in when you are ready to start the work, which comes with its own benefits. First, you don’t need to price the whole project in one go and can instead make progress on the work at a pace that suits your time and budget.
Personal loans for home improvement are different from home equity lines of credit and home equity loans because personal home improvement loans don’t borrow against your house. Home equity lines of credit may not be for you if you want a consistent interest rate and predictable monthly payment.
Whichever way you decide to finance it, here are five things to know when choosing a home to renovate.
1. Grab a Bargain
Obviously, a wreck of a house will take some work to get it to achieve its full value. But if you are prepared to carry out some of the renovations work yourself, and set a strict budget, you can end up with an amazing home at a hugely discounted price.
2. Less Competition
A home in need of repairs or that has dated décor or looks rough around the edges just doesn’t turn heads in the same way a clean, modern home does, which could mean there will be less competition from other buyers.
3. Perfectly Yours
When you are starting from scratch, you can make every inch of your home your own. From taking out a wall to create open-plan living to choosing the color scheme that goes perfectly with your dream sofa, you can make sure every detail is to your taste.
4. Build Equity Quickly
One of the main reasons why currently renovating makes sense in Louisville is to add equity to your home. When you purchase a rundown property and renovate it with smart design choices, you are guaranteed to add value. You’ll need to come up with the funds, and then make the improvements (or oversee them) but when done well, you’ll realize a substantial increase in your investment.
5. No Nasty Surprises
While a property may look in a good state of repair, scratch beneath the surface, and you might find rotten woodwork, a faulty furnace, a leaky roof, or any number of problems you hadn’t accounted for. By buying a home that needs a complete overhaul, you can plan time and budget for each of these home improvements, avoiding a nasty shock that you might not have the money to rectify.
So keep an eye out for rundown properties. Look past their current state, and visualize how it will look once you have put your own touches on the place. Once complete, you’ll be living in a more customized space and your bank accounts will thank you.