A house extension can be a very expensive proposition. However, it can not only add a measure of ease to family life by expanding square footage and cheaper than buying a new home, it also adds overall value to your house. Once you’ve made the decision to add an extension, you have to figure out how you’re going to pay for it. Some elect to add the expense to an existing mortgage, but it really is more cost effective if you can save money and pay for it outright. Here’s how.
- Evaluate the costs. You need to consider all the expenses involved in adding on an extension. This will include the architect to plan the structure, the permit fees, utilities, foundation, excavation and the actual build. There’s a lot to think about, and you might want to sit down with someone who has been through it to discover any hidden costs you may be missing.
- Set your goal. Now that you know the costs involved, it’s time to make some decisions and set your financial goal. Some decisions are not negotiable, but in other areas you will have to choose materials and design options. Decide what you want and how much you are willing to spend.
- Establish an account for your extension. This is a savings account separate from investments or emergency funds. This will be an account strictly for your extension. Every spare penny should end up in this account, from change found in the couch to the money saved on cashback credit cards. Funnel everything that isn’t essential into this one account.
- Consolidate credit card debt. Instead of paying high interest rates, take advantage of balance transfer credit cards and put those savings toward your house extension fund. Make sure you make timely payments on the cards and pay the balance off before the interest rates jump.
- Do it yourself – or ask your friends to do it for you. Take advantage of your own DIY talents or the talents of y our friends to help you build your extension. Some services have to be performed by professionals in the field, such as electricians or plumbers, but other areas can be handled by dedicated friends and family. This can include laying a floor, painting, framing or handling drywall. Don’t be afraid to ask, just be aware someday you might have to return the favor.
There are many ways to save money for something if you want it bad enough. Make the small sacrifices today, and reward yourself with a nice addition to your home which will add value and comfort to your home.
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