(This article was originally published on the 30th November 2018 and updated on the 10th December 2019).
Home renovation is one of the most exciting endeavours house owners undertake on a periodic basis to beautify, remodel or expand their existing dwellings. For some, it is the ‘project of a lifetime’.
Minor repairs or refurbishments need little preparation. However, for major home makeovers, there is plenty of planning required. It is not limited to design or construction but also clever financial planning.
Funding Partner of Home Renovations
It is interesting to discover that many Malaysian homeowners are able to undertake house upgrades by obtaining personal loans. They find the facility ideal and well-matched to fulfil their desires of improving the home.
Because projects of this nature are costly, funding support is often necessary to ensure the project’s completion. Read on and learn how your home renovation project can be completed smoothly from beginning to end.
A step-by-step guide to use personal loans for home improvement or renovation
1. Project Concept
The idea of home renovation usually comes when the owner feels that his or her house needs a major overhaul. It can be in the form of expansion, remodelling or complete ‘newness’ that would change the overall ambience. Once the concept is firmed up, the planning begins.
2. Project Costing
Some home renovation projects would need the services of an architect to design the concept. If perfecting the design would not demand professional help, then you can save on expense by securing only the services of a contractor to do the job.
Have a couple or more contractors to survey your house on estimating how much the home renovation project would cost. Review each proposal and compare them. Look at the bill of materials, labour costs and related expenses, including bonds, permits and other incidental charges.
3. Select the Contractor Budget Preparation
The proposals will provide you an estimate of the total project cost or at least the price range. Make sure that the time frame for completion is also included. That will indicate how long the inconvenience will last while the renovation is ongoing.
The selection of the contractor is crucial. The low priced quotation might not necessarily turn out to be of quality work as compared to the expensive offer. Always seek out recommended contractors to have that level of comfort.
4. Budget Preparation
When you have decided on the project contractor, then assess your cash position. See if you can set aside a budget to meet the stipulated project cost. If the cost is too steep to pay at the moment, you can decide to defer the project at a later date.
You can also opt to do the project on a piecemeal basis or phase-by-phase construction in order not to disrupt your financial situation. Since a major home renovation project would involve a huge amount, carefully evaluate the funding support or the type of loan facility you would need.
5. Decide on Funding Support
With the contractor selected and the total project cost calculated, you can decide the best funding support to begin the project. If the renovation cost is really high, a mortgage loan or home refinancing facility is a good option. The advantages are a higher loanable amount, lower interest rate, longer repayment period and affordable monthly amortization.
However, if you want to secure a loan package without having to offer a collateral, then a personal loan is your best option for funding support. This is the reason why many Malaysians prefer this type of loan because of its advantages.
Applying for a personal loan is less complicated and the faster processing time favours the borrower who is eager to start the home renovation. Some personal loan providers even offer Shariah concept financing.
The way to go about a personal loan is to pick a trusted personal loan provider. Find out the maximum loanable amount, interest payment schemes and extra fees or charges. The best ones offer reasonable if not low rates and do not charge upfront fees which are deal busters in most cases.
Let the Renovation Begin
The step-by-step guide presented in this article is a sure-fire way to turn your home renovation concept into reality. You can expect a problem free project, from conceptualisation and construction, up to funding support.
Need a personal loan to build a home that will meet both your needs and your budget? Check your loan eligibility with Direct Lending now and we will help you realise your dream. Direct Lending is an online personal lending platform for civil servants and private sector workers. We help borrowers to find, apply and receive financing that most suit them. Our service is 100% free.