Anyone who renovates their home will be adding value to their property. The return on investment might not be instant, but with the UK’s burgeoning private rental sector you may be able to add an extension and then let your new spare room.
Here are five ways of using loans to carry out money-making renovations.
1. Let out a room
If you take out a bank or personal loan in order to construct an extension or modify an existing bedroom, then you can take advantage of the UK’s housing shortage. Recent developments in the housing market mean that there is a strong demand for rental property. You don’t have to move home, simply modify your house and advertise that you have a room to let. A look at the News Now website shows that you could earn an extra £100 per week by carrying out these modifications.
2. Using your car for finance
If you want to make some minor alterations to your house in order to sell your property, access to cash is essential. Even if you only want to just paint the walls and fill in any cracks or repair the plaster, it’s worth contacting www.carcashpoint.com for a logbook loan.
If your car is under 10 years old and not owned by a finance company you may be able to access up to 75% of its value. If you own an upmarket vehicle you can buy a considerable amount of paint and other essentials for redecorating your home. You’ll also make your house look more appealing to any prospective buyers.
3. Upgrade your home
The This is Money website highlights that you can add an extra value of your home by remodelling these rooms. The website states ‘a bathroom can be a decent selling point on a property with the demand for en suites fuelling this trend.’ One of the first rooms that a buyer looks at is the kitchen, so take a good look at yours and see how a personal loan can help you add 6% to the value of your property.
4. Use your loft
Another way in which you can add value to your house is by extending your loft space. The National Association of Estate Agents (NAEA) believes that a property’s value can increase by up to 10% with a loft conversion. This means that when you sell your house you can easily repay any loan you may have accessed to finance the refurbishments. A small loft conversion starts at around £15,000.
5. Energy efficiency will help you make money
Despite the recent changes to the government’s Green Deal you can always take out a personal loan to make your home more energy efficient. This will save you money on fuel costs and make your house easier to sell when you wish to put it on the market. A draughty, single glazed un-insulated property with an ancient boiler is much harder to sell than one that’s energy efficient.