How did you pay for your renovations? HELOC? LOC? Cash? HEL?
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Anonymous
| We are planning a kitchen and maybe bathroom renovation for 2022. Just thinking about costs now. I think theoretically we may be able to pay in all cash, but I don't want to wipe out our savings too much and we also need to buy a new car soon, so we will need cash for that. I just wanted an idea of what people tend to do. I know this board tends to swing towards cash heavy households but maybe it will surprise me ha! |
Anonymous
| Cash. I would put it off for another year if you need to. |
Anonymous
| Cash out refinance using equity. |
Anonymous
| Cash |
Anonymous
|
Everyone is really paying in cash?
OP - I had the same question as you. We need to update our kitchen soon and I saw that other thread asking if $65k was the norm for kitchens. Are people really paying cash for renovations that expensive? |
Anonymous
| If you have equity do a HELOC but that's not a huge enough renovation that you should be doing a loan. |
Anonymous
| We took out a home equity loan even though we could have paid all in cash. I think our rate was 3.89 on a 15yr 90k loan. Our thinking was that the money we could make in the market was greater than the interest rate to borrow. We paid it off in about 5 years. |
Anonymous
OP here. Yeah it is the norm for this board but not the norm for the country!( I think) I read once the median bank account is only like 5K. |
Anonymous
What was your reason for choosing the loan vs a HELOC? This is really where I am torn. |
Anonymous
We definitely have more than 5k in our bank account but the thought of spending 65k in cash or whatever...that just seems like such a big chunk. |
Anonymous
OP here. Right? I agree. It is more than we put down on our house lol. |
Anonymous
| Pay cash, and take out a HELOC as a safety net and use the heloc money to pay for car if necessary. |
Anonymous
| Cash from the sale of an investment property (which used to be our primary residence before we moved to dc). |
Anonymous
|
We were advised to take out a HELOC or renovation loan even though we could pay cash, because there is oversight/approvals needed to ensure that the work is progressing to get paid. Obviously we could do that ourselves but it seems like extra oversight. We'd then pay off most or all of the HELOC when we are done, but we'd also have extra cushion in case costs went well over what we were expecting.
I'd be interested in hearing from anyone who considered something similar. |
Anonymous
| Cash from the sale of our old house. We earned 300k in profit on it, we are putting 200k of it into the new house. |