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I own a condo in so cal. I owe 170,000 and could get 280 to 300k for it if I sold it. I need to do some renovations on my kitchen for around 8k. I don't know if I should try and get a equity loan for 10k or should I charge it? Any advise appreciated
Who told you to spend the $8K?
Your listing agent? If you have one, you did interview at least 3 before selecting this one, right?
Why are you thinking of selling? Where do you plan to live next?
I got 1 quote for 8k. Guess I should get more. I'm planning on selling and moving to Arizona in a year or so so fixing up the place slowly. Last year I did the bathroom for cash but 8k is too steep for cash. Real estate is crazy here so could maybe get the same $ for the condo if I leave it as is. I just enjoy renovating and hope I can make even more equity when I sell it.
If you get a home equity loan the interest rate will most likely be a lot less then if you charge it UNLESS you can get a credit card for zero percent for 12-18 months!! If you can I would go that route. If you can't then get the home equity loan as you can usually write off the interest on your taxes. An $8k investment on a kitchen will return you much higher on the resale!!
If you get a home equity loan the interest rate will most likely be a lot less then if you charge it UNLESS you can get a credit card for zero percent for 12-18 months!! If you can I would go that route. If you can't then get the home equity loan as you can usually write off the interest on your taxes. An $8k investment on a kitchen will return you much higher on the resale!!
I think there are MANY experts around here that would disagree with your last sentence.
If you have the ability to pay off $8,000 in a 12/18/24 month interest free period (whatever is offered), I would charge it.
If you do not, a HELOC is the better route.
Don't charge it if you are paying your credit card's interest rate. It will be much, much, much higher than a HELOC. That amount on a HELOC will give you around $1.00 per diem, or $30-35 per month in interest. That amount on a revolving credit card could be anywhere from $50-150, or more, in interest per month.
I think there are MANY experts around here that would disagree with your last sentence.
Well expert, you didn't give any reasons why a kitchen remodel would not bring you a return? Many experts would say that typically kitchen & bath remodels increase the value of a home.
Well expert, you didn't give any reasons why a kitchen remodel would not bring you a return?
The reasons are myriad. Most have to do with trying to guess what a buyer will really want.
Quote:
Many experts would say that typically kitchen & bath remodels increase the value of a home.
Not so much. An actually needed remodel will *maintain* the value wrt local comps.
Actually increasing value? Nope.
At best... it removes a question mark from a buyers mind making your place easier to sell
in comparison to the other comparable 30yo properties that haven't had that remodel work done yet.
But MOST kitchen (and bath) jobs are overblown projects 2X to 5X what is actually "needed"
The incremental extra will NEVER be recovered.
So... if you intend to remain put for the twenty years or so the project will be 'fresh'
and you can afford the extra $40-60,000 involved and the design/materials etc really suits you...
then gay gezunt hey
Just don't confuse those discretionary choices with rational business decisions.
Upgrades may help to sell the property faster, but they don't usually pay for themselves. Plus buyers may not want to buy a home that has a loan on it for the improvements you are making. I am of the school of thought that decluttering, deep cleaning, and maybe painting are the way to go. However, if you have seriously discolored or damaged formica you might need to do a little more, but keep it to a minimum. It will not help the price you get, just the fact that you can sell it quickly.
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