When people talk about home renovations or improvements, they’re usually referring to projects like adding an extra bedroom, bath, or a new roof.
These days, a significant number of home renovations are technical.
They include things like all-around security enhancement, green engineering, and adding solar panels to reduce utility bills. How do homeowners pay for these projects?
The answers are as varied as you might expect, with some folks dipping into savings and other using their home’s equity to pay for all costs associated with tech upgrades.
Here’s a summary of the ways people are paying for tech-based home improvement projects, along with a shortlist of the top three things they’re doing with the needed funds.
-Home Equity Loans and HELOC’s
Leveraging the equity you have built up in your home is one of the common ways of financing any home improvement project, tech or otherwise.
There are some restrictions on this technique because most lenders require you to have lived in the house for a minimum amount of time.
Additionally, you’ll have to meet minimum equity amounts based on lenders’ requirements.
-Student Loan Refinancing
One of the easiest ways to instantly decrease your monthly expenses and free up money for tech upgrades is refinancing student loans.
Not only do most people end up with a lower interest rate and more time to repay the obligation, they also benefit from lower monthly payments.
For homeowners who want to tweak their budgets in order to pay for things like smart lighting systems and all-around security, refinancing student debt is a simple, fast solution.
The good news and bad news about this strategy is that is is by far the fastest but also the priciest way to finance a home upgrade. For most people, this is a method of last resort.
Older owners often have access to money in savings accounts that can instantly be put toward whatever purpose they desire.
When it comes to funding a home-related project, if you have the cash on hand, consider this no-hassle way of paying for some or all of the project.
What Do Homeowners Use the Money For?
Solar panel systems can range in size from a few small units to whole roof and even backyard-based coverage. Prices also range from a few hundred to many thousands of dollars.
Many owners who plan to stay in their homes for decades make good use of solar panels because even though the initial costs are high, the big payoff comes after about seven or eight years, when the projects have completed paid for themselves.
Security systems used to mean a few door and window alarms and maybe a surveillance camera.
Nowadays, all-around security systems include as many as 50 tiny cameras, even more microphones, loudspeakers, motion sensors, laser beam entry detection capability, and much more.
As is the case with solar panels, security system costs range from tiny to huge.
All-home green energy design can cost plenty as well but usually pays dividends in the long run with lower utility bills.
Green energy components include items like programmable thermostats, smart lights, weather-sensing devices that control air flow, and reflective drapes.