A house is a prized possession for one and all. As the time passes, the home owner expects appreciation in the value of the property. And this appreciation is expected not just for a psychological comfort, but from a seller’s perspective as well. In case the owner wishes to sell the house to buy a new one or to bridge the gap in fuds required for a specific purpose, one would want to derive maximum benefit out of the deal. Also, one would want to get the return on the large investment that would have been done in buying and upkeep of the property.
The valuation of the property is based on variety of factors. The most important ones being the locality or the area of the house, the built up area and the quality of construction. A few other factors that influence the buying decision in India can be the direction of facade of the house, vastu etc.
Now the house owner if wants to sell the house can increase the value by renovating it. Here is how it will help and how it can be done by taking a personal loan.
First and foremost, why only a personal loan. This loan product has its own benefits. First, it does not restrict one from the end use of the loan proceeds and second, the processing is real fast. If one has a good credit score the funds can be expected in the account as fast as 24 hours. While the loan comes at a higher rate of interest, it indeed is for a shorter term. Not only does it ends faster but as against a loan against property, it does not restrict you to sell the house without taking NOC from the lender.
Following are the ways in which the value of the house can be increased using the personal loan.
Goes without saying that a new interior will add to the value of the property. Renovation will lead to using the current trends and latest styles that will help in increment the cost that can be demanded from the buyers. The buyer since will be getting a newly done up house and would not be required to undertake the hassle of redoing a few things, will definitely be willing to pay more than the market price.
Kitchen is close to all home buyers. We have noticed “modular kitchen” being used as a tactic by builders of all scales. An updated kitchen with good fittings, working slabs and place for gadgets like fridge, micro, chimney, griller etc will definitely be of added attraction to the buyer.
We all know that there is wear and tear and over a period of time even the electrical wiring shall get worn out. It means that it would need to be replaced. Some part of the loan proceeds can also be used to have the old wired replaced with new ones. This can act as a great feature in increasing the value since the new occupant would not be required to worry on this for years to come. Also the new and better wires will facilitate higher savings in electricity and thus bringing down the monthly expense.
If the building is really old, it may even be a better idea to get even the water pipes changed when the renovation is being done. This will lead the property construction to be deemed as new in totality and can help in garnishing better pricing.
Renovation will help in faster selling
Goes without saying that the renovation will help in faster decision of the property. If one is looking at options in the same locality and can get a better house where he can shift without having to undergo the hassle of dealing with various vendors for renovation, he would not mind making a faster decision and shelling out little more to buy the house.
As we see, despite higher personal interest rate, it makes a good idea to take a personal loan and use to increase the value of the house.
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