Renovation money advice

VooDooChilly

I have just bought a property that needs modernising and estimations are that it will require 15-20k to do all the works (new kitchen, bathroom, plastering,etc) what's the best way to pay for these renovations as we will need a loan or something like it to pay for it all. Any hidden ways I should know about it just commit to a long term loan?

ellie27

Does it have to be done straight away.

Couldnt these improvements just be done over the next few years so and you could put money aside each month to do them, then not need to take out loads?

We have been too busy living and enjoying our new house that it is only now, after 18 months, we are about to make some changes.

somethingcorporate

You bought a property to renovate without working out how you would fund it seems a bit cart before the horse, but hey ho - you are here now.

Make a list, get quotes, work out what costs how much and go from there. You may be able to get direct finance (for kitchens etc) at 0% which may be cheaper than funding via a loan. Do it piecemeal and spend each £ wisely. Taking out a massive loan upfront will almost guarantee the entire lot will get spent.

Hoploz

Most people buy something that's liveable, and do things bit by bit when they can afford it.

Save a bit every month and do a project every few months.

Just do the minimum necessary at first and work through it one room at a time.

G_M

"hidden ways" to get a loan? :huh:

Yeah, borrow off that dodgy-looking guy down the pub.

I too can't quite believe you didn't have a plan or budget before you committed to the purchase.

But if money is tight, the obvious answer is to do most of the work yourself and just fork out for materials or expertise where you have to.

DCFC79

No hidden ways about it.

You can do it in stages, is the plastering desperate to be done ?

Can the kitchen or bathroom go 2nd on the list and the other go 1st ?

Hoploz

Of course, the best way to borrow for renovations is to get a mortgage sufficient to leave you cash in the bank for the work. It's the cheapest borrowing you can get. But looks like it's too late for that so you'll have to do what I said before

glasgowdan

Could you just borrow the money from your parents?

Buying car advice
I'm suffering from a major quandary about getting a car and am finding the decision between two cars difficult.

Option 1:
Hyundai I30 comfort 1.4 petrol 59 reg 28,000 miles
List price: £6490
£1600 part exchange for my current car
And my parents have offered to lend me £4890 to pay the rest off but paying them back as if it was a finance deal with a much better interest rate of £95 pm for 5 years.
Manufacturers Warrenty until November this year then 2 year dealer warranty on top.

Option 2:
Seat Ibiza Toca 1.4 petrol brand new
£1500 part exchange for my current car
£500 deposit
PCP purchase arrangement of £119 pm
With my annual mileage of 15,000 and the usual pcp options eg. Pay off the remainder of the 4400 after 3 years and keep the car/trade the car back for the remainder value and a bit on top to use as a deposit for a new car back on the PCP scheme.

In really stuck on which is the best option and starting to lose the plot thinking about it as I know prey much nothing about cars.

KRB2725

I would give it a good clean and live with what you've got for a while.

We bought a very dated house. We redecorated top to bottom and then did the bigger jobs in time.

We are just about to replace the kitchen after living with the old one for 5 years. When we viewed the house I thought it needed to be done immediately.

Carmk2008

Are you sure its going to cost that much, we did a total refurb on our 2 bed flat that was new kitchen, bathroom, plastering throughout and new flooring all done for 5k and that was a nice bathroom suite and oak worktops in kitchen I got up to 60% of with trade point card, I did all the installing myself to keep costs down. And Learn to plaster yourself its not that hard will save you a fortune, tip I bought the burst bags of plaster for £2.50 per bag, perfectly fine, less than half price all these things add up. I financed it all with 0% credit card not ideal, but I only paid back what I borrowed.

Ozzuk

I'd tread a little carefully, obviously we don't know your finances but you appear to be potentially building up a lot of debt with your car/house. This is fine if you have a lot of money coming in but consider what happens if mortgage rates shoot up, house market doesn't do well, you lose your job etc.

As others have mentioned, most people buy a renovation with a plan to finance the works, otherwise they would just buy a house that is done. Or, you have a go as much yourself, a great way to learn and just pay for what you can't do - can be a great way to make good on your investment.

IMO only seek a loan if you are confident the money is there in the house (cost of reno+purchase<predicted sale price) and confident of your job.