Do the words ‘home renovation’ conjure up thoughts of exposed wiring, sheet covered furniture and exhausted savings accounts? While there is a degree of cost and disruption associated with all renovations, the value you can potentially add to your Brisbane property through a major renovation may well be worth the adventure. At this point what many Brisbane home owners new to major renovation work want to know, is how to finance their major home renovation?
Nine times out of ten, readers of our blog are researching the affordability of major renovations for their Brisbane home and we have answered the call with our renovation costs guide and raise and build in under costs guide, what we haven’t explored is financing for major home renovations in Brisbane.
Consideration for Major Renovation Financing…
When considering major renovation costs, home owners will receive advice from many different sources to determine what they are likely to be paying. Regardless of what friends, family or well-meaning neighbors say, it comes down to what a builder will charge for the work required; this is very similar to finance, where borrowing capacity will come down to the value your proposed renovation will add to your property.
As far as major renovations go in Brisbane, costs will begin around $100,000 with the BDAQ top design award category for residential alterations / additions attracting Brisbane projects that have cost in excess of $600,000 to complete… it’s clear there is no shortage of major renovation work being financed in Brisbane.
Now, the information provided here is not financial advice, but a generic overview of the stages for financing a major home renovation, your bank should always be the first contact point for specific requirements based on your individual circumstances.
So what do you need to finance a major renovation?
As an absolute minimum before a bank will even consider investigating your financing request, you will need to organise design plans and builder’s quotes. Note: a bank will also request finishes and fixtures included within your builders quotes to support their valuation.
During the design stage an experienced building designer will advise on the best ways to add value through major renovation work, the difference between good and bad designs can equate to 10s of thousands of dollars.
With your application and supporting documentation in hand the bank will value your property and determine the ‘on completion’ value. A banks valuation figures need to balance against what they’re prepared to lend, work that is deemed unlikely to significantly contribute to a property’s value will be unlikely to achieve finance approval.
As a building design firm with decades of experience designing for major Brisbane renovations we have provided design plans for many Brisbane home owners wanting to significantly contribute to the value and livability of their homes.
With experience advising on potential construction costs, regulatory requirements and best practice subtropical design practices it’s no surprise Brisbane home owners approach SEQ Building Design when considering a major renovation project.
SEQ Building Design – With over 20 years’ experience helping Queenslanders with their renovation designs and plans, we have a great understanding of what it takes to get your Brisbane renovation started so if you looking for designs or advice call our team on 07 3257 7224.