You live wonderfully in your dream house. But as the years go by, you get new wishes. For example, through family expansion. Or you would like to make your home more sustainable or energy efficient. For example, a beautiful conservatory, a new bathroom or kitchen is suddenly necessary. High time for a renovation. The costs of renovating your home are often considerable. Here you can read in a nutshell what options are available.
Renovation costs
Renovating your home is a radical process. It takes a lot of time, money and effort. Therefore, prepare yourself well. Make sure your finances are in order and take enough time to map out your wishes. And if you can't figure it out, enlist the help of an expert.
Number of tips for renovation costs
● Reserve 15% of the costs as a reserve. A renovation often turns out to be more expensive.
● Always shop around for the best price and request at least three quotes.
● With various subsidies you can save considerably on costs for your renovation.
You can pay for a renovation in several ways. How you finance the renovation depends on your situation. Maybe you have enough savings or you are investing sustainably. Otherwise you have to borrow money or expand your mortgage. What options do you have to cover the costs of your renovation? You can read that below.
House renovation:costs and possibilities
1. Calling on savings
The cheapest way to pay for a renovation of your house is to save for it. Logically. Especially if your savings are higher than € 30,360, then it is an extra smart option, because otherwise you pay tax on this part. These rules will change from 2022. From then on, savings will only be taxed from € 440,000.
2. Extend mortgage Also a good option and the tax authorities pay indirectly, but it only becomes interesting above an amount of around € 25,000, because you have to go to the notary for it, among other things. You also spread the costs for the renovation of your house over the term of your mortgage (up to 30 years). And you can also partially get the interest back.
3. Personal loan
A loan from the bank is also possible. A personal loan for a renovation of your house has a relatively low interest rate. Yet you pay a higher interest rate than that for your mortgage. And in addition, you also have to repay this loan faster. In general, this loan is the easiest to arrange, but also the most expensive. But here too, the interest is deductible in most cases.
4. Do as much as possible yourself
Are you handy with odd jobs? Or do you think you can paint that wall yourself? Then you can save considerably on costs. Matters such as gas and electricity are often best left to certified professionals (partly due to the requirements of the insurance company or Owners' Association). But with the help of tutorials from hardware stores and on YouTube you can come a long way. It's fun and educational.
Subsidies and the costs of your renovation
There are various subsidies available with which you can renovate and/or make your home more sustainable. You can reduce costs for your renovation that much, but they often differ per municipality and the type of renovation. Do you have a house, farm, apartment or studio? Then the subsidies differ. For a complete overview of all subsidies, please visit the website of Vereniging Eigen Huis or improvejehuis.nl.
Investing involves risks. Your investment may become worth less.
