Can Personal Loan for Home Improvement Help Increase the Property’s Value
An investment is a good investment, only if the return you receive is more than what you had initially put in. In today’s world, real estate is a prime commodity and purchasing a home is not the only way you get good returns. You will have to ensure that your home is well-maintained and does not suffer from gradual wear-tear over the years.
The rate at which the price of your home appreciates (or depreciates) is directly dependent on certain factors. One such factor is the condition of the property. A well laid out home improvement plan can be a step in the direction.
When you spend money for home improvement, you enjoy dual benefits. You enjoy a good quality of life staying in a beautiful abode, besides maintaining a valuable asset. Although, no one plans to sell the home they reside in, however, a well-maintained property may come as a substantial support when you need money, or you plan to buy a bigger house in the future.
Advantages of renovating your home:
1. It makes your home as good as new, thus increasing its value:
When you have lived at your home for a certain period, there is some wear and tear. Renovating and remodeling it periodically make them look as good as new and attract potential buyers.
2. It helps in the maintenance of the home:
When you are using the property for self-use, it is important to ensure that all the essentials fixtures and fittings of the house are properly cared for. Your roofs, your light fixtures, pipes, and tiles – all need a bit of maintenance. A timely home repair or renovation will take care of these.
As such, periodically, you should invest some time and money to fix all the important parts of your home. This will make sure that the next person who buys the property will not quote a lower price or demand things to be fixed at the property.
How to ensure an increase in your home’s value?
By merely remodelling your kitchen, working on an outer wall of the home, or planning additional room, or undertaking small home extensions that stand your property apart from the neighbouring houses, can significantly enhance the value of your home. A smart home improvement plan can indeed help to increase the value of your property to at least 5-10%, which is quite a jump!
A good renovation strategy, however, would require you to look at several aspects of the house and during such inspections; it may be possible that you unearth bigger issues – a pipe leak, a wall that is crumbling, etc. As a result, remodelling a home always goes out of the budget.
Financing the home improvement plans
Here a personal loan can help. Since most people do not have a ready repository of cash, Personal Loans can come to their rescue. A personal loan is not earmarked for specific spending purpose; and thus, you can use the funds for home renovation.
However, before you Apply for the Personal Loan, it is evident to evaluate the decision. If a home renovation is an absolute necessity? Do you have other sources of funding the renovation plan? What is a more efficient source of funds—a loan or a fixed deposit. Why opt for a Personal Loan?
You must do the Maths properly before applying for the loan. You can compare the cost of interest on Personal Loan for home renovation to the overall value appreciation of the property. Besides, the emotional and financial factors would also help you make an informed decision.
Further, let’s explore below why a Personal Loan from the leading banks is an ideal funding source for home improvement:
1. Personal Loans are not earmarked for a specific purpose:
Whether you apply for a leading unsecured loan like HDFC Bank Personal Loan or for that matter, any other personal loan from NBFC or a financial institution, the usage of funds is not earmarked for a specific purpose. As long as you fulfil the eligibility criteria, the bank will not ask any questions and give you the freedom to use the money as you want. In short, Personal Loans are more versatile.
2. Personal loans are without collaterals:
Let’s take the example of the credit product by the largest public sector bank SBI Personal Loan. You can get a loan of up to Rs. 25 Lakh from the SBI (This amount differs from bank to bank), without the need to have any collateral or security.
3. The application process is simpler than other types of loans:
Most loan applications can now be filled online, and with the right documents, your loan is disbursed within 24 hours. In fact, if you are applying to the same bank you have your account in, this process of loan amount disbursal is even faster.
4. Track everything online:
Personal Loans from an established bank give you the freedom of keeping a track of everything online. Not only can you apply online, but all your transactions, your interest rates, and other particulars can be checked on the internet with a few clicks of the mouse. Handling loans have become so much easier with the help of internet.
Next step should be diligent research. A Personal Loan from a good bank will ensure not only fast disbursal but also much efficient customer service and lower interest rates. In addition, accessibility to the online portals will help you to keep a track on the finances and other particulars of the loan. You should always research all the options available in the market and go for the options that will not burden you financially or mentally. The key is not to make a hasty decision – take your time and choose the best one to help increase the value of your property.
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