Creative Ways to Finance Home Repairs
23 Jul, 2017 / By Jennifer Hamilton
Home repairs are a great way to enhance the look and function of your home, but they can get costly! There are certainly a plethora of loans out there just begging for your business, but do you want to get in over your head in debt just to fix some things around the house? If you are doing large repairs/remodeling, it can be even more expensive and debt inducing. Rather than jumping in headfirst with a home equity or even personal loan, consider these simple ways to get the money you need.
Sell Items You Don’t Need
Cash is king when it comes to performing home repairs, but not everyone has large amounts of excess cash lying around to be spent on these items. If you are in that boat, why not try selling items around your home? Start in the room that you are working on – are there items in there that you will no longer need once you repair and/or remodel that room? If they are in good condition, you will likely be able to make a little bit of money on them, as oftentimes, one person’s trash is another person’s treasures. If you sell enough stuff, you just might have enough cash to pay for the repairs outright.
Use your Income Tax Refund
Do you get a large income tax refund every year? Why not plan ahead and dedicate those funds for your repairs? This gives you enough time to plan exactly what you want to do as well as know that you will have the money to fund it in the near future. If you are unsure about whether or not you will receive a refund, use the tax calculators that are available online and see how you are stacking up so far this year. It is never too late to make adjustments to your withholding; just talk to your employer to see what steps you must take to ensure a refund next year.
Barter with Others
Do you have a skill that you can offer someone in exchange for his or her services on your home? This can be a great way to get things done around your house without spending much more than the materials for the project cost. Typically materials are the cheaper component of a home project, while the labor is the most costly. When you are able to switch out services, you can afford the work that needs to be done a little easier while helping someone else out at the same time; it’s a win-win for everyone that is involved!
Use Tax Credits to your Advantage
If you are able to come up with the funds to get your home projects complete, but are worried what it will do to your savings down the road, look into which improvements will have a positive impact on your income taxes. There are numerous tax credits available for energy efficient improvements on homes. If you are going to be making large changes, it is well worth the effort to look into which changes and/or products will provide you with the largest tax credit for next year’s taxes.
Making home improvements does not require a home equity loan or any other type of financing. You simply have to think outside of the box to see where your funds could come from in order to get the project done. Keeping yourself out of debt while improving your home at the same time creates the ideal situation for you in the long run as you will gain value in your home as well as make it more comfortable at the same time.