With property prices as high as they are currently, moving in to your dream home might be a plan that keeps getting pushed in to the future.
Luckily, with a bit of extra cash, having the bathroom of your dreams doesn’t have to be as far off and the best part is that a nice, functional bathroom will most likely add to the resale value of your house. Unlike an extravagant water feature or pool that won’t be helping you in the long term, an updated bathroom is a good way to love where you live now and set yourself up for the future.
It could be that your dream bathroom is the all-time classic with a clawfoot bath and gold taps or you might prefer the contemporary look of walk-in shower, frameless glass screen and dramatic black marble. Whatever your preference, finding the right finance option is the first step to dealing with that dark, dingy, mouldy bathroom.
Before you get too carried away, it’s best to work out either how much it will cost to turn your bathroom dreams into reality or how much you have available to spend. In the case of the latter, once you have a set dollar figure in mind, you can tailor your bathroom renovations to suit.
Keep in mind there will be a significant difference in the costs of simply remodelling a bathroom, compared to renovating where structural work such as walls and windows need to be removed. Some bathroom companies give you an idea of costs when you contact them online and this may be helpful when looking at your budget.
If possible, paying up front to update your bathroom is always the best option. Of course this is not likely to be a choice if you are planning on going all out but for a little remodel this is the way to go. Even though it might seem like a big chunk of money upfront you will be saving on the interest in the long run and you could earn some great rewards if you put the amount on your credit card. It is only suggested you use your credit card if you know you can pay the bill upfront at the end of the month.
For a medium scale bathroom renovation you may want to consider taking out a personal loan. A personal loan will help you get the amount you need upfront and the repayments can be structured in a way that lets you pay off the new bathroom in set amounts to suit your budget. Another great feature of most personal loan is that you can make extra repayments without penalty if you decide to pay the loan off earlier. This can help you avoid paying high amounts of interest in the long term.
Using your home loan
If you’re going all out on the bathroom of your dreams and you have been paying off your home loan diligently over the years, you may want to consider redrawing on your loan. Harnessing the built up equity in your loan is a good way to access funds at a low interest rate. Spending the money on renovations should also add value to the home so it’s a win-win situation over time.
After you have decided on the best way to finance your new bathroom, you’re one big step closer to enjoying endless pampering in your own private day spa - at home.