Renovating Tips

Home buyers wishing to extend finance in order to renovate their proprety have 2 basic options:

1. a second loan can be arranged for this OR
2. a new loan which consolidates the original mortgage and improvement funds.

Generally speaking consolidating the original mortgage is the preferred option unless the property is to be used for investment purposes in which case a second loan is a great idea to maximise your possible tax deductions.

When considering the cost of moving, including Government charges and selling costs, it often makes more sense to renovate and stay within the school zone and local community that suits your needs.

Renovating Tip:
Keep the cost of your renovations in proportion to your property's market value. If you spend too much, your home may be worth substantially more than the average for your area or “over-capitalised”, and if you sell your property you may not recover all your money. When property prices are stable or falling it’s easy to over capitalize.