Home renovations are the best way to boost your home's value without having to wait a dozen years for the market to do it instead. Unfortunately, most people don't have the savings to go ahead and throw tens of thousands of dollars at their homes any time soon.


Instead of stressing the bills, consider refinancing! This awesome tool can help you afford these changes, increase your home's value, and even lower your capital gains tax liability if you sell!


1. No Waiting to Save Up

When you save money, it can feel good to know you're not dealing with having to pay interest, but the projects you want to do are put off as well. This might mean that a roof that needed to be changed five years ago is still there and still deteriorating. This could lead to leaks and issues that will, in the long term, cost a lot more money to repair.


Saving up can also lead to unfortunate failures. Although you're setting aside the money for your home, there may come an emergency or a need to get away that will eventually make you spend your savings.


Instead of hoping you can pull the money together, keep your savings and just refinance instead. 


2. Avoid Hitting Credit Cards

Whether you’re looking for window replacements in Massachusetts or seeking new siding in Nevada, one thing is true for the whole country: prices are looking higher than ever before. Credit cards and the cost behind them can be a lot to deal with, pulling your score into the gutters just so you can update your roof or siding.


This hit can also eventually make it harder for you to purchase a home since it will drag your score down. 


3. A Chance to Thoroughly Budget

It's vital that you know how much everything is before you start budgeting. Simply looking at how much impact-resistant shingles cost can push your plans back by months or even years if you’re saving up.


If you want to budget as carefully as possible, then getting a loan will help. You have the time from application until the money is available to you to set up a game plan, and be sure to follow through. This will make sure you don't guess your way through an upgrade.


4. Getting Down to Brass Tax

Most people who sell their homes in the mid-2020s are not going to be exempt from the capital gains tax because of how much property taxes have skyrocketed. A single person is exempt from the first 200,000 dollars, and a couple is exempt from the first 500,000, but that profit goes down if you've invested some of it and aren't getting pure profit.


Capital gains tax can be 15% to 20%, which is a lot of money to give up if you can simply invest it back into the property to repay later.


5. One Bill Every Month

One issue with getting a traditional loan or going through a credit company is that you're going to have to deal with more than one bill a month, including your mortgage. When you refinance, all of the payments come through one bill. You can pay that and know that you've taken care of your financial obligations in one go.


6. Resources Are Offered

Repainting is one of the most inexpensive porch ceiling ideas, but that doesn't mean it's your only choice! When you apply for a refinancing loan, many companies and banks you would apply through will offer resources, local discounts, and information on what you can do to save money and make sure that loan goes even further.


They want your renovation to be successful so that you can pay them back in full without any trouble. This is something no credit company is going to offer.


7. More Money to Work With

Sometimes, a good choice is to consider your options before buying. Researching cedar vs composite decking cost can change how comfortable you are with one material over the other. If you're saving up or using credit, you'll often have a far lower budget. This means you'll end up going cheaper on things that you actually should have spent money on.


If you have more money, you'll be more likely to go for things like a slate roof, which has a higher ROI, than an asphalt shingle roof, which isn't awesome in every environment. Although you shouldn't try to spend more than 10% of your home's value on any one portion of it, you should be able to afford to make the changes you want to. 

You Don’t Have to Save to Afford Renovation!

Renovating is always going to add value to your home when done correctly: you shouldn’t have to worry about breaking the bank to be able to afford it. Consider refinancing the next time your property needs a big upgrade!


Sam Willis is a freelance writer that loves sharing his knowledge and expertise in residential and commercial real estate, as well as engineering and construction. He lives in Atlanta, Georgia where he enjoys spending time with his wife and researching real estate trends in his free time. Sam’s work as a freelance writer can be found on Building Product Advisor, a construction industry resource site.