While the cost of home innovation varies depending on the precise work that you have done, there’s no doubt that creating your dream home will require a significant financial investment.
On average, Americans spend approximately $13,000 on a single home renovation project (£9532.89), and while this number dipped during the coronavirus pandemic, the desire to create a dream home remains strong among property owners across the globe.
But how can you go about financing your dream home renovation? Here are some ideas to keep in mind.
#1. Use Your Cash or Savings
Perhaps the easiest way to fund your home remodelling, utilising your cash and hard-earned savings enables you to fund individual projects without incurring debt or significant risk.
Also, investing your savings or the income from matured bonds into a home renovation project allows you to add value to your property without compromising on your everyday standard of living.
However, this can also encourage you to spend more than you should on your project, so it’s important to set an initial budget and move the money that you intend to spend into a separate account and savings vehicle.
This is definitely preferable to using a credit card, as this will incur significant interest repayments and increase your debt burden over time.
#2. Get an Unsecured Loan
Unsecured loans are a viable option for home-owners that don’t have the requisite savings, or those who have slightly more ambitious projects in mind.
These loans don’t require you to provide collateral to secure the loan, meaning that your home won’t be put at risk should you struggle repayments.
Of course, this also means that unsecured loans are likely to carry higher rates of interest, as lenders look to offset their increased risk and create a superior value proposition from their perspective.
So, while unsecured loans are relatively accessible, you should try to process the total cost of borrowing (including proposed interest payments) in order to make an informed decision.
#3. Consider Trading Forex
Finally, anyone who wants to raise funds quickly and flexibly for a home renovation could also consider forex trading, which can provide a passive and potentially lucrative source of income over time.
Of course, you’ll need knowledge of the market in order to be successful, while using features such as the myfxbook copy trade enables you to replicate strategies used by more seasoned traders.
While it’s fair to say that up to 70% of forex traders lose money consistently, the market is also highly leveraged (which means that you can control relatively large positions with a small amount of money and potentially incur large returns).
Similarly, forex trading enables you to trade international currencies as derivative assets, which in turn makes it possible to speculate on price movements and profit without assuming ownership of the underlying financial instrument.