- Jul 12, 2007
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After a lot of debate, my wife and I have finally decided that we are going to go through with several medium to large remodeling projects. We are going to start with converting an Office attached to our master BR into a true fourth bedroom. We are then going to redo our basement (which is currently unusable), our deck (which is falling apart), refinish wood floors, paint interior and exterior, and then move onto *bigger* projects like remodeling our kitchen and master bath, and repairing our driveway.
Unfortunately DIY is not a possibility for us. I am more than capable, but I work from 6AM-6PM, and sometimes on weekends. Not to mention that the value of my time (on a per hour basis) is higher than what most contractors charge for this type of work. Hence, one or more contractors will be handling these projects for us.
Since this is my first stab at remodeling, I thought I would ask those of you who have been through this process for some tips. Any must dos or don'ts, in your opinion? Are there any pitfalls I should be aware of?
I would also be interested in hearing about how you financed your project. I have identified the following options:
1. Heloc (I can get a 20 year fixed HELOC (not mortgage) for 3.75% from my credit union
2. Raid personal (non-retirement) investments to cover bulk of the cost (cheapest but not desirable to me for various reasons)
3. Cease retirement/personal investments for 4-5 months - use those dollars to pay for the project(s) (note - I have significant retirement savings already and am only 35 years old).
4. ??
Any other options I might have missed?
Thanks in advance,
Sox
-Update 04/05/2013 - So the wife and I have decided to move forward. We got a quote from a reputable contractor for $62k that includes all materials except those that will be installed in the bathroom (for which we have budgeted another $18k). Construction will begin in our basement on 04/22. Will post pics as things progress, if I get a chance.
Financing wise, we decided to use a combination of non-retirment savings and a HELOC. HELOC rate through my bank was only 3.75%, which is quite low and less thanthe returns I'm seeing in the market. Plus the HELOC interest is tax deductible. So, we took out a $50k line of credit, and will pay the remaining 30k out of non-retirement assets. Can't wait for all this work to be done. The basement alone is going to be a huge improvement, as it will increase the finished living area of or home by almost 800 square feet (~40% of the current GLA).
Unfortunately DIY is not a possibility for us. I am more than capable, but I work from 6AM-6PM, and sometimes on weekends. Not to mention that the value of my time (on a per hour basis) is higher than what most contractors charge for this type of work. Hence, one or more contractors will be handling these projects for us.
Since this is my first stab at remodeling, I thought I would ask those of you who have been through this process for some tips. Any must dos or don'ts, in your opinion? Are there any pitfalls I should be aware of?
I would also be interested in hearing about how you financed your project. I have identified the following options:
1. Heloc (I can get a 20 year fixed HELOC (not mortgage) for 3.75% from my credit union
2. Raid personal (non-retirement) investments to cover bulk of the cost (cheapest but not desirable to me for various reasons)
3. Cease retirement/personal investments for 4-5 months - use those dollars to pay for the project(s) (note - I have significant retirement savings already and am only 35 years old).
4. ??
Any other options I might have missed?
Thanks in advance,
Sox
-Update 04/05/2013 - So the wife and I have decided to move forward. We got a quote from a reputable contractor for $62k that includes all materials except those that will be installed in the bathroom (for which we have budgeted another $18k). Construction will begin in our basement on 04/22. Will post pics as things progress, if I get a chance.
Financing wise, we decided to use a combination of non-retirment savings and a HELOC. HELOC rate through my bank was only 3.75%, which is quite low and less thanthe returns I'm seeing in the market. Plus the HELOC interest is tax deductible. So, we took out a $50k line of credit, and will pay the remaining 30k out of non-retirement assets. Can't wait for all this work to be done. The basement alone is going to be a huge improvement, as it will increase the finished living area of or home by almost 800 square feet (~40% of the current GLA).
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