Hey everyone, I was just hoping to get some feedback and help with my current situation.
I currently own a house which I am living in and I want to renovate it, as the house needs a fair bit of work on the inside. I am looking to spend $50000 and I am wondering about the best way to obtain this finance. I already have a $100000 loan against this house.
I was wondering what would be the best option in this situation as I am definitely renovating it.
Any suggestions would be great.Thanks
Hi apmal17716,
first thing first, is your house worth it? Not personally but will the reno improve the market value, if so by how much?
Then, from my experience, banks like it if you can actually pay for the additional loan, so you need to proove that you can service the new loan, the mortgage, any other loan/CC/store card and still live. Dead people don’t usually pay back loans! Most banks don’t like the negative stigma that is asociated with foreclosure so they tend to do all they can to stay away from potential situations that may cause this.
Thirdly, get yourself a mortgage broker (there are several on this site) these guys are worth their weight in Gold. They will work with you to get the best deal (in my experience) and Tee up a banking institution for you. All you have to do is go in and sign and prove your claims. They realy are a wonderful invention.
Once you get investment savvy, you can go it alone or keep with your chosen MB, your choice!
Best of wishes in your adventure.Cheers
C@34
Hi apmal7716,
I’m in pretty much the same boat as you. I’ve estimated that $50,000 will get me the extension that I want which includes living space, kitchen and a face-lift for the bathroom.
In addition to your detail though, I have about $150,000 in equity on the house and am positive that the $50,000 spent could simply be added to the sale price and be achievable.
My dilemma is whether it’s worth spending the money and going through the hassle of having the work done, or saving the money and simply selling for that amount less [blink].
Good luck with the finance and I’ll be watching your thread to steal ideas where handy.
ps. Welcome to the forum. [evo]
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