How home improvement can save money
It’s not easy to find a home that suits your every need - in most cases, there is always something missing. If you already have a home in the perfect area, you should consider whether it would be more cost effective to renovate your existing home rather than purchase a new one.
The advantages
- You get full control over the home improvements.
- Further advance on an existing home loan is generally easier to come by (existing record exists).
- No transfer duties / transfer fees payable.
- No relocation costs payable.
- Further advance on an existing home loan is generally easier to come by (existing record exists).
- No transfer duties / transfer fees payable.
- No relocation costs payable.
The disadvantages
- Depending on the age of your existing house, it may be costly to achieve the modern features that a new home may offer.
- If you are planning to add to or make changes to the existing structure of your home, you will have to have building plans drawn up and this will have to be submitted to the local municipality for approval. Both steps involve some cost.
- Depending on the work to be done, building can be messy.
- If you are planning to add to or make changes to the existing structure of your home, you will have to have building plans drawn up and this will have to be submitted to the local municipality for approval. Both steps involve some cost.
- Depending on the work to be done, building can be messy.
Financing home improvements
- Re-advance: taking your existing home loan balance back up to its original amount which means there’s no need to register a new bond and funds can be paid out relatively quickly
- Further advance: an option if you have sufficient equity in your existing property, i.e. if there is scope between the “as is” value and the outstanding balance on your home loan
- A separate Building or Home Improvement Loan - if there is no scope to lend funds against the existing value of your property. Approved plans together with quotes must be submitted to the financial institution. The valuer will assess the improvements and determine a valuation as if completed
- Further advance: an option if you have sufficient equity in your existing property, i.e. if there is scope between the “as is” value and the outstanding balance on your home loan
- A separate Building or Home Improvement Loan - if there is no scope to lend funds against the existing value of your property. Approved plans together with quotes must be submitted to the financial institution. The valuer will assess the improvements and determine a valuation as if completed