Home Renovation with Loans, What's The Benefit?

  Home renovations cost a lot of money. The value can even be almost the same as building a new house when a major renovation.

The cost of home renovations ranging from dozens to hundreds of millions of rupiah. Lucky if you have savings or have prepared for this need.

What if not? The house is urgently being repaired. There's a lot of damage here and there, making it uncomfortable to live in.

Home Renovation with Loans, What's The Benefit?

The solution to this renovation fund problem is with loans, such as Unsecured Credit (KTA) and Multipurpose Credit (KMG) and Home Ownership Credit (KPR). The loan gives a large enough ceiling for home renovation.

Here are the benefits that you can get if you renovate your home using borrowed money:

1. Savings stay safe

Using loans from banks or financial institutions will not interfere with your deposits. Savings are safe for future preparation.

Savings can be used according to their designation. For example saving for retirement funds, buying a car, or emergency funds when the condition is in dire condition.

When you use a loan for home renovation costs, just focus on paying installments every month. This budget can be allocated every time you get a salary or income.

Set aside about 30% of salary or income to pay down debt. The discipline of paying installments will make you avoid late penalties and potential mounting debts.

So, plan a home renovation loan carefully. Take the tenor and the amount of installments that are in accordance with financial conditions, so you can pay it every month.

2. Prevent cost overruns

Home renovation with a loan can prevent cost overruns that could potentially arise later on. Because you can do the renovation quickly.

For example, want a home renovation in 2020, when the price of building materials is stable. But, as it waits for enough savings, new renovations are taking place in 2021 where the price of building materials rises.

Eventually the cost of renovations swelled. From what should be in 2020 it is estimated to be around Rp 100 million, to Rp 150 million in 2021.

If only using a loan, you can renovate in 2020 as planned, so as to avoid enlarging these costs.

With borrowed money, you will also be more careful using every penny for home renovations. Buy building materials at a cheap price, but the quality is still good.

For sure you will manage the loan funds wisely for home renovation to fit the plan so that it is really enough.

3. Realizing a decent home for the family

Home is an important primary need to protect you and your family from sweltering heat and rain. Become a comfortable 'palace'.

But for reasons of cost, many people often delay home renovations. Though you can immediately repair the renovation of the house after a liquid loan.

There is no need to wait to have special savings for this need. Loans from financial institutions can help, bringing about changes in your life and your family.

Especially if the house is urgently repaired. Is it waiting until the house collapses? Of course not, because the cost will be greater if you continue to delay it. The sooner it is repaired, the better.

Plan carefully before borrowing.

Applying for a loan for home renovation is not a scourge of well-planned origin. Make a clear picture of the priorities of which parts will be renovated.

That way, you don't need to do renovations on unnecessary parts. Things like this not only make the cost of renovations swell, but also can make the results of renovations are not maximal.

Avoid unplanned renovations. Because this can make the goal not achieved. As a first step, you must determine which parts will be renovated.

After that, determine the priority scale first. If the purpose of renovation for example is to repair a family member's room that is weathered, focus on it first, then the other part.

The next step, conducting a price survey of various building material needs that will be needed, both in online and offline stores. Including the cost of the service of the builder to work on the renovation.

This will make it easier for you to calculate the cost of the renovation, including seeing a clear picture of the results of the renovation and building materials that will be used later.