You should only consider borrowing money to renovate your home if you’re confident that the project will either reduce your long-term costs or increase the value of your property. Some home renovation projects can increase your property value by a greater amount than what you spend on renovations.
Attic insulation, basements, bathrooms and front door remodels top the list for valuable repairs. If you’re hoping to improve the value of your home before selling, make sure you’re putting your money where it counts.
If renovation work on a house or apartment is due, this costs money. It also depends on the type of renovation. In most cases, only a new wallpaper or a different color comes on the walls, the doors are painted and a new floor covering may be added.
Most of it was. Nevertheless, such work is cost-intensive, especially when the entire apartment is to be replaced. For such purposes, the banks are providing a loan for the renovation.
Renovation, modernization or renovation?
If the work in the house or apartment serves the purpose of saving energy costs or increasing the value of the property, then a modernization loan can also be considered. In contrast to the loan for the renovation, this is tied to the purpose. However, government-sponsored loans can also be used for this.
These are awarded by the development bank. The typical examples of such a loan are facade insulation, the installation of a cost-saving heating system or renovation of old properties. In this context, one speaks of renovation or modernization.
However, if you just want to beautify your apartment or house, a loan is enough for the renovation. This is only about a relatively small amount of money that can be covered with a conventional installment loan. These loans are not earmarked and anyone who applies for them online does not even have to specify a purpose.
Use a credit through your checking account or credit card
Many have a disposition limit on their checking account that they can use without asking the bank beforehand. This also applies to the credit card. Here, too, there is usually a limit and repayment can be made in small, convenient installments.
If you want to use this, you should be aware that higher interest rates are payable than for a loan for the renovation. It is therefore only worthwhile if the time frame for the repayment is not too long. Otherwise you should rather resort to a loan.