Renovation – for a loan or for a loan?Renovation – for a loan or for a loan?

Wall plastering, wallpapering, painting, laying new floors, comprehensive restoration of the bathroom and kitchen, new furniture and decorations – renovating the house is not cheap and can cost us from a few to even tens of thousands of zlotys. When renovation is indicated, and we do not have the whole amount, you can borrow it. What to choose – credit or loan?

I think each of us would like to live in a comfortable, stylish environment that fits our taste. Renovation is the best solution in this case, because thanks to it, we can renew the interiors in which we live. The costs of such work depend mainly on what you expect. Therefore, before we write an application for a loan or for a loan, we should take the time to calculate what amount we will need.

How to calculate the cost of renovation?

In the case of renovation work, it is often difficult for us to determine how much expenditure will be. We have to take into account the costs of materials we need, labor costs when we want to outsource the work of the repair team, and also the costs of furniture and other equipment. We can find prices online today, but usually we will also have to go to the stores to check the materials with our own eyes.

Once we’ve calculated all the costs, always add about 10-20% more to them, because additional expenses may be added during the renovation. For example, it may be necessary to renew the wall, which is moldy, it will turn out that the prices of individual materials will go up, you will need to buy something else, and at the same price will not find what we will like. Of course, our concept can change as well and the initial calculations will no longer be adequate.

A loan for the renovation of an apartment

Usually, when a smaller or larger renovation is planned, a loan is selected. We can apply for it in a bank or a non-bank loan institution. We have a wide range of various offers available. We should remember that it is best to take out an installment loan, because the payday will be payable in a month. Thanks to installment loans, we can easily spread the debt into smaller installments and thus we will pay it back without straining our home budget.

We can now take a loan to renovate the flat even via the Internet. In the case of non-bank loan companies, the limit is then around PLN 10,000. In banks, in turn, it depends on our creditworthiness.

Or maybe a mortgage for renovation?

Another suggestion is a loan or mortgage for home renovation. Then we set it and it is a loan security – then we must remember that if we do not pay the installments, the property may be taken over by the bank or loan company.

The advantage of loans and mortgages is the possibility of borrowing a larger sum with lower costs than in the case of cash loans, which results from the possession of collateral. Of course, we will also have to have adequate creditworthiness, which will allow us to pay off the contracted obligation at the indicated time.

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