December 22, 2014
A new outdoor patio or deck is a great way to create a new area for you and your family to relax on beautiful days. This and other outdoor renovations will increase your home’s potential and also increase its overall value.
However, outdoor construction isn’t something you can just jump into. To properly handle outdoor renovations in the most efficient, cost-effective way possible, you need to plan for how you’ll finance your project. To help you get started, we’ve provided some financing tips below.
It’s crucial to factor in all of the costs related to an outdoor construction project at your home. This includes material and labor costs and padding for unexpected expenses. Knowing this information will allow you to plan your budget as accurately as possible so you can figure out how you’ll be able to pay for the project.
Once you figure out the cost of your outdoor renovation project, it’s time to start saving money. Determine when you want to start your outdoor construction project and create a financial timeline leading up to it. The more time you have to save, the better since you may decide you want to add onto your outdoor patio or deck. Having money saved can make that addition possible.
It’s better to finance the majority of your project upfront since you won’t have to worry about applying for loans or paying off credit card balances. This is another reason why it’s smart to save your money before the project begins. When you get a loan, you’ll have to pay interest on it when submitting your payments. If you use credit cards, you may also have to pay interest if you can’t cover the full balance when it’s due. However, when you pay upfront, you don’t have to pay any interest. Also, it usually doesn’t take long to save enough money for your outdoor construction project.
While cash payments are the ideal way to finance your outdoor renovation project, you still may have to apply for a loan, and making sure you borrow from the right source is key. Home equity lines of credit are great for individuals looking to do some renovations because you only pay for what you use. However, you must do your research because different home equity lines of credit have different interest rates that can fluctuate with the market. Paying off the loan as soon as possible will help you avoid high interest payments.
Financing your new outdoor deck or patio is easy with some good planning. There are several ways that you can finance outdoor renovations, but before you even begin, it’s best to speak to a professional to review what you want from the project and what it will take to get you there.