Due to being stuck in our homes in the past year, many of us are faced with the problem of renovation, but now may not be the time for big home improvement projects. COVID and quarantines have resulted in massive supply disruptions, production delays and labor shortages – the perfect storm that has sent construction costs skyrocketing.
According to the National Association of Homebuilders, the cost of building materials has dropped. increased by an average of 26.1% Last year. In particular, sawnwood prices have more than doubled since December 2020, and luxury materials such as marble have also risen significantly in recent months.
Even if you can afford higher prices for materials, there is no guarantee that you will find what you need. Everything from vinyl and resin to household appliances has become more difficult to acquire as 90% of builders report a shortage basic accessories.
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Increase your budget for the basics and save money to avoid big loans
What does this mean for homeowners? Whether you want to make home renovations or renovations, you need to significantly increase the building’s budget. You should plan for a lot more material costs, and this shortage also means that delays can lead to higher construction costs in a different way.
For example, remodel the kitchen It could have taken six to eight weeks a year ago, but now it may take twice as long for your builder to cope with labor shortages and try to get the fixtures you need. This means more time for your builder – and for you. After all, the longer your kitchen is down, the longer you need to order food or look for alternative ways to get your morning coffee.
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Big renovation budgets tend to mean big repair loans… While interest and refinancing rates now surprisingly low, this is not the best time to take on more debt than you planned. In addition, lenders are still hesitant to provide excess credit in a volatile economy, so it can be more difficult to obtain personal loan…
Instead of planning for a large loan, focus on savings to finance as much as possible. home repairs as you can yourself. This minimizes your loan needs, which lowers your interest expense. In addition, you are usually more likely to get approval for a small or modest loan than for a large one.
Save and repair what you can
Home appliances are one of the main categories in short supply, so a new refrigerator you have your eye on may not be an option any time soon. If possible, keep your equipment rather than buying a new one.
In some cases, this may mean that you need to repair your existing equipment. If they are still under warranty, contact the manufacturers. If not, look for a local store where you can get your home appliances repaired and tidy.
Repairing your home appliances not only saves money that you can invest in other materials – especially with costs still rising – it means investing in your city’s economy by hiring locally. In addition, repairs and recycling do not allow this equipment to be taken to landfills – a win-win option.
Buy used when you need replacements
If for some reason you are unable to keep up with your current appliances, consider replacing them with carefully used, new purchases. A used refrigerator or washing machine that’s just a couple of years old can still be a significant upgrade to your current machines while still being economical and cost effective.
And, as with new home appliances, hiring local repair companies to give new life to used home appliances is good for the economy and the environment. You can check social media accounts and message boards to find everything from large household appliances to small specialized machines, often even when stolen. Do your homework before buying, and don’t be intimidated by too many things that may require some elbow grease.
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