The renovation plan that fits your budget | Combit Construction

1. The Renovation Plan that Fits your Budget With interest rates historically low, there are plenty of good reasons to remodel your home, from fixing a defect to turning a bedroom into a work-from-home o?ce or perhaps increasing its overall value. But before you begin construction, consider costs, contractors, and how long the job will take. This detailed guide can help you plan your home improvement project while staying within budget. Create a Project Plan Before you begin, determine the size of your home renovation. Do you need an architect? Will you hire a contractor or save costs by doing the work yourself? Does your project qualify for tax deductions? Consider these questions and think about whether the improvements will add value to your home in the long run.

2. Keep in mind that when you sell your home, you may not get back every penny you spent, especially if the improvement makes your home worth more than other homes in the area. Also, some renovations could cost you more money in the short term. If you build a new room or remodel one to become your remote o?ce, this could lead to higher utility bills. Set a Budget Maybe you want to make big adjustments to your home, but you shouldn't have to adjust your finances after a renovation. When setting your budget, remember that it's not just about costs. In addition to calculating permit fees, labor, the cost of good quality materials, and temporary housing, you'll need to figure out how much you can responsibly pay and how much you're willing to spend. Look for Financing Once you have established your budget, you can start looking for financing. Leveraging your home equity through a home equity loan or

3. line of credit (HELOC) might be your best option, as home-backed loans have lower interest rates than home equity loans. unsecured personal or credit cards. One of the terms included in your HELOC line of credit is a “drawing period,” which is typically five to ten years. During the withdrawal period, your loan will function as an open line of credit. You will have a set limit on how much money you can receive, and you can borrow up to that limit, pay it back, and then borrow again as often as you like. Once this time has elapsed, you will enter the payment phase. If you decide to go this route, be sure to apply well in advance, as it can take up to four weeks to process an application for a HELOC line of credit. And remember, when your loan term ends, you must pay the loan back in full. Although the interest rate on a HELOC line of credit is typically much lower than other types of credit, if you miss your payments, the lender could foreclose on your home. Hire a Contractor Unless you love doing repairs, you may want to hire a general contractor. Before you do, read reviews online, get suggestions from friends, and ask for recommendations from local real estate agents. To make the best choice for your budget, try to get multiple cost estimates, and most importantly, always make sure the contractors are certified and insured.

4. Get the Necessary Permission Permits are critical to a smooth renovation. Don't know where to start? Visit your local city hall or building department to find out what permits are required to comply with building codes. From plumbing to electrical, make sure you meet all the necessary requirements to get your home project up and running. Agree on a Payment schedule First, set up a payment schedule with your contractor, and be sure to get it in writing. Plans are typically secured with an initial payment and then additional payments are made as the project progresses. Monitor Progress Check the status of your project frequently to make sure work is being done properly and e?ciently. To keep everyone on track, keep your

5. contract handy. This should contain important information such as your overall budget, start and end dates, material costs, and warranty information. There is always the chance that unexpected problems will a?ect your budget. If that happens, most home remodeling experts recommend considering some alternatives: Are lower-priced fixtures and finishes a good option? Are there parts of the project, like painting, that you can complete on your own?