In our first blog post about HELOC Toronto products, we discussed a lot about the benefits of using the line of credit for debt consolidation. There are many uses for a HELOC. One of the top reasons to take out the line of credit is to fund home improvement projects. A HELOC can provide you with the much-needed cash to turn your dreams into reality, no matter the scope of your desired renovations. If you’re looking for inspiring ideas for how to use your newfound HELOC money, consider these five superb upgrades!
Replace The Garage Door
Replacing the garage door might sound like a small project, but you will recoup about 95% of the cost of the door when you go to sell it. The high ROI makes it a wise financial decision. Not only will it look great when you’re living in the house but when you go to sell it, it will almost be like you never had to pay for it.
If you have a rusty, old garage door, consider not only getting the door itself but the tracks as well. If it is a manual door, add in the necessary parts to make it automatic. Buyers love to see an excellent garage door that they don’t have to open manually. If you have a multi-car garage, a brand new door can also help draw buyers’ attention to this vital selling feature.
The average cost of this job is about $4,000-$5,000. As such, it won’t eat up much of your HELOC line.
Performing a minor remodel of your kitchen will recoup about 80% of the cost upon selling the house. The high recovery value and both aesthetic and functional pleasure make kitchen upgrades a great candidate for HELOC funds. Upgrading your stove, countertops, fridge, and other kitchen essentials can have a positive impact on your quality of life. Also, replacing ageing appliances can have a positive effect on your energy bill. New fridges are significantly more energy-efficient, for example, than legacy ones are.
The ballpark cost of a minor kitchen remodel runs between $20,000 and $30,000, so you can expect to use a moderate amount of your HELOC should you pursue these upgrades. Given the high cost of doing a fully custom remodel, it’s a great candidate for those extra funds!
Add An Extra Bedroom Or An Extra Level
With the style of Toronto-area homes, adding an extra bedroom is challenging. One way you can add one though is to finish the basement if you haven’t already. A finished basement has not only the added benefit of additional living space, but it also can be a source of rental income. Many homeowners can cover their mortgage payments just by renting out the basement. What this means is that you would be able to live on the top floor of your house, effectively mortgage free!
One popular upgrade to a Toronto house is to take off the roof and add a level. This particular improvement is costly. For an average home, the cost of doing so is usually at least $100,000 and can even go up closer to $250,000. However, by adding the second level, you will have increased your living area and significantly increased your home’s value. Adding a second level can mean adding 2-3 bedrooms and 1-2 bathrooms. Imagine what being able to advertise a house of that size could do for you!
Adding another storey improves your home’s selling price significantly and provides much more space to live. If you find yourself with a half a million or so in HELOC fund availability, this upgrade is almost guaranteed to be a fantastic use of that money.
New Paint And Flooring
These are small jobs but can make a world of difference. A new coat of paint with new flooring can make the house feel entirely brand new. If you are stuck with apartment-grade carpet, upgrading to brand new, beautiful hardwood floors will make a world of difference. Also, hardwood flooring is much easier to clean than carpet and attracts less dust.
While painting a home is often a few thousand, upgrading flooring can run into the tens of thousands depending on how many rooms you want to replace. If you’re looking at real hardwood flooring, it can be $15 per square foot. Multiply that by 2,000 square feet and upgrading your whole house could be $30,000 or more.
If your home is old, you may have lighting fixtures that go with the times. Nowadays, buyers want to see modern lighting. Dimming switches, recessed lighting, and other enhancements are all great uses of HELOC funds. New lights will accentuate your home’s attractive features and also make it feel significantly more modern. Adding patio lights and other outside lighting is also a great use of HELOC funds as it looks fantastic and also adds resale value. Imagine being able to show buyers how they can turn on the back yard lights for entertaining guests late into the night.
As with most home renovation projects, the cost to do lighting upgrades can vary significantly. A qualified electrician is the best person to install these fixtures. To upgrade the lighting significantly generally costs a few thousand dollars at minimum. If significantly electrical work is involved, the project can run into the tens of thousands.
Use Your HELOC Funds For Great Renovations
Using your HELOC funds wisely for home upgrades is critical. Remember that the money is not free although it is relatively low interest. Therefore using it for home renovations that will at least retain their value is critical. Replacing your garage door, renovating your kitchen, adding an extra bedroom or level, putting on a new coat of paint, and upgrading lights are all great ways to use your HELOC funds. They are fantastic upgrades that will delight you for as long as you live in the house. Also, they will retain their value once you’re ready to sell, thereby ensuring you have the funds needed to repay the HELOC balance!
By using a mortgage agent or mortgage broker from Citadel Mortgages, you will be able to ask all the questions you have and be ensured you get the best advice and mortgage product for your mortgage needs. Contact us here at Citadel Mortgages to become mortgage-free sooner!
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