Home Renovation Ideas on a Budget
Buying a house is the American dream. For most of us, the home you own or are planning to buy isn’t 100% perfect and might require some major or minor renovations either to meet your specific tastes, or because of the age or condition of the home. So, at some point in your life, you will likely find yourself planning a home renovation. Renovating a house in MO or KS will require careful planning and importantly, coming up with your home renovation budget is a key step in this process.
Remodeling a kitchen or bathroom are among the most popular home renovation projects. In fact, the national average amount of money that people spend on remodeling a kitchen alone can reach up to $50,000.To have an even better idea of what that dollar amount would be in Southwest Missouri or Kansas, enter your ZIP code here. That is a considerable sum to pay on just one room alone, which is why OakStar Bank has some helpful home renovation tips for those who don't want to break their budget.
Create a Home Renovation Budget
Whether you're planning on remodeling your kitchen, bathroom or finishing your basement, you are going to need a home renovation budget to forecast your costs and have a plan for how to pay it off. There's a lot to keep in mind when it comes to a renovating your Missouri or Kansas home. Depending on the extent of your project and your specific taste, your costs will fluctuate. To begin, it's smart to use a remodel cost estimator.
As you begin to begin a home renovation budget, there are a few things to keep in mind. Consider your home's value when creating your budget. You don’t want to spend over 15% of the value of your home on a single room during a remodel. It's also smart to get in touch with a private banking financial advisor so you can have a better understanding of what the best method of payment is for you. Finally, it’s smart to set aside an additional 15% overage budget for any potential surprises that come up along the way.
Attempt A DIY Home Renovation
If you are wondering how to renovate a house with a limited amount of money, it may be wise to see if a DIY home renovation is right for you. The first step to doing this successfully is understanding which projects you can do yourself and which you cannot. While painting and replacing a faucet might be in most people’s skillset, other projects might be more than you want to take on.
You also want to keep in mind the materials you need to purchase. For example, if you need to paint for your bathroom wall, you can surely afford to pay for those buckets of paint on your own. But if you need a $200 drill that you will only use once, it may not be the best investment for this project. If you do wind up needing a contractor for certain parts of the renovation that you don’t know how to do or that will require an inspection for later, be sure to factor that into your plan and budget. Just make sure you always check a contractor’s license status and reviews before hiring them.
Know the Best Time to Buy Materials
If you are going to buy materials on your own, like most products, there are better times of year to do so than others. Interested in designing a new deck? Typically, people in colder climates will get their decks done during the summer, so to avoid buying materials during the busy season, stock up on materials during the winter when they will be on sale. Once you reach the decorating stage of remodeling, you are going to want to learn the secret to saving money every season. Are you installing a new mantel in your living room? When it comes time to putting up decorations, you should try to coordinate the times of year you buy new ones. If you are decorating for a specific holiday, make sure to hit up the stores shortly after the holiday ends to grab the best savings and stock up on décor a year in advance. No matter your decorating goals, the longer you give yourself to stock up ahead of time, the better chance you’ll save money on your project.
Get Creative with Reusable Materials
Purchasing materials for a home renovation quickly becomes a costly process. From lumber and cabinet handles, to sinks and drywall, buying new materials is expensive. Where you live can also significantly affect the materials’ cost as the location of the materials you purchased may have a substantially higher tax than other states. For fellow Missouri or Kansas residents, you are looking at a sales tax rate of 4.225% in Missouri and 6.5% in Kansas. Therefore, for every item you purchase for your renovation project, you may be spending over 6% per item.
One way to save money on materials is to reuse as many materials as possible or purchase previously used or leftover project materials. Search local websites to see if folks near you have extra materials like tile from other projects. Or hit up local secondhand stores, tag sales or flea markets to see what might work well with your new space. For example, an old dresser could be turned into a DIY vanity with some elbow grease and cabinets someone may not like could be perfect for your project with a fresh coat of paint.
Utilize Your Current Rewards Credit Card
Like any large purchase, renovating a home will add up, so it’s smart to look at opportunities to earn a little bit of money back. One way you can achieve this is by using a credit card with rewards. Have a travel rewards card? Use this card for your purchases on materials along the way, and you can wind up earning enough points to book a free flight. Or, if you have a cashback rewards card, you can enjoy receiving back a portion of the money you invested in your project. Occasionally, financial institutions unions offer bonus points when you use your rewards credit card during a specific timeframe. You'll want to make sure to keep an eye out for that time so you can earn the most amount of points during your renovation.
Consider A Home Improvement Loan
When it comes to affording your remodeling dreams, it is helpful to understand all of the financing options available to you. If you already have equity in your home, it’s wise to look into a home equity loan or home equity line of credit. If you are planning a significant home improvement like updating your kitchen or adding an extra room, this type of home loan can be a good fit for you. If you don’t have the home equity you need just yet, you may want to explore a personal loan. Personal loans give you the money you need to afford your updates to your home right away. Just keep in mind the current interest rates at OakStar Bank by giving us a call at 417.447.0535 so you can lock in a good deal on your loan.
Whether you are on tight remodeling budget or have plenty to invest in the home of your dreams, budgeting properly will help you plan and reduce stress. For assistance with budgeting for your home renovation project, feel free to contact OakStar Bank, or visit us in one of our Southwest Missouri and Kansas locations.