Should I use a personal loan for home repairs and renovations?
Most homeowners will agree that property is far from a set-and-forget investment. Houses and apartments age just like anything else, and we’re willing to bet you have a never-ending list of renovation ideas no matter the size or state of your home. There’s also the matter of maintenance and repairs, which are often impossible to predict and can leave you significantly out of pocket in what feels like the blink of an eye. Knowing how to cope with the cost of repairs and renovations will do wonders for your wallet and protect you from potentially life-changing financial difficulties.
Expensive home repairs to look out for
1. Roof repairs
Your roof takes a serious beating throughout the year as it protects your home from Singapore’s relentless heat and fierce thunderstorms. This makes it vulnerable to leaks, rotting and other damage, which can range from replacing tiles for a few hundred dollars to a full replacement costing you thousands.
2. Mould removal
Mould can be a slow but destructive force in buildings, whether it’s a small buildup on visible surfaces or permeating through the entire structure. What can seem like an insignificant issue can cost a small fortune to remediate before major damage occurs, particularly if leaking pipes need to be fixed or replaced.
3. Air conditioning repairs
Keeping life bearable in Singapore’s climate means you need a cooling and ventilation system you can rely on. Because these units offer years of service when properly maintained, and require specialised knowledge to repair, it can be expensive to get them fixed. It only gets pricier if you need a replacement, with new units costing several thousand to buy new.
Quick tips for keeping repair costs low
- Be proactive with maintenance
- Fix damage before it gets worse
- Compare quotes from different suppliers
- Budget for repairs to prevent snowballing costs
Renovation traps that will blow your budget
1. Choosing expensive materials
It’s hard not to be tempted by the fancy samples you’re given when considering new flooring, wallpaper, countertops and other parts of the home. We all want materials that will look great and last, but consider focusing on high-impact areas and balancing the cost with more practical materials in less important areas.
2. Doing it all at once
The thought of drawn-out renovations is hardly appealing, so it’s understandable to want everything done as quickly as possible. That said, rushing the job is a quick way to jack up expenses; take your time and complete sections one by one to give yourself more time to plan, budget and compare quotes to get the best price.
3. Poor planning
Renovating your home is a time-consuming task that requires careful planning. The more time and effort you put into your planning, the more cohesive and cost-effective the result will be. Making hasty decisions and failing to anticipate problems will almost always cause expensive headaches down the line.
Quick tips for reducing renovation costs
- Consider alternative materials
- Compare quotes from multiple suppliers
- Take your time in planning renovations
- Opt for timeless styles, not short-lived trends
Using personal loans to cover home repairs and renovations
Everyone wants to live in the home of their dreams – spending on repairs and renovation is essentially an investment in your quality of life. If you do find yourself short of the cash needed to afford home improvements, check if you are eligible to apply for a personal loan to cover the costs. Unlike mortgages and car loans, personal loans can be spent however you like, giving you access to the cash you need to pay upfront for work on your home with repayments spread out over an agreed term.
Always do your research before applying for a loan, and consider whether it suits your personal circumstances. Not sure where to start? Compare loans online with CompareSing and get an instant quote based on your income and preferred amount.