Are you planning for a home extension? If so, you probably have a lot of questions!
Nevertheless, a home extension is an excellent way to create room for your growing family or add a home office without the trouble of buying a bigger house. Not only does it help you repurpose your existing space in a short time, but it also adds value to your property.
Not to mention, home extensions require adequate planning and funds. So, before you start your home extension project or apply for a loan for house extension, here are some questions you should ask yourself.
1. How will I use my space?
Before you start, you must be clear about the purpose of the extension. Write down your objective: adding rooms, installing storage systems, creating a home office, etc. Then, evaluate how much space you can devote to this project.
This step will help you decide the design and functionality of your added space.
2. How much will it cost?
Once you have visualised your home extension, you can approach decorators, architects, builders, and other professionals. With professional help, your entire design and execution process will become streamlined.
Most importantly, you need to get a quote about the costs of labour and materials from them and evaluate how much you will have to pay at the end. This brings us to our next step: spending capacity.
Additional Read: Home Extension Loan: Home Improvements Made Easy
3. How much money can I spend?
Once you have estimated your costs, you should figure out how you will finance your home extension. So, calculate your income and expenditure, factor in any future expenses, and finalise your budget. Add or remove functionalities from your projects, if need be.
If you do not have funds or your savings are locked up in other investments, you can take a home extension loan. But wait, there is one more step before you apply for a loan.
4. How much do I need to borrow?
Let’s say you have chalked out your budget, and you want to fund your home extension fully or partially with a loan. But before actually borrowing the money, you must plan how you will repay it so you don’t borrow more than you can afford.
An easy way to do this is to use a home loan EMI calculator. Enter your loan amount and tenure, and adjust these values till you arrive at an affordable EMI value.
Additional Read: How is Home Extension Loan Different From a Home Renovation Loan
5. How can I be cost-effective?
One way to be cost-effective is to re-use what you can and minimise rework. Avoid replacing walls, plumbing, and other fixtures with new ones unless necessary.
Besides, if you avail of a home loan for extension of house, you can enjoy tax benefits of up to Rs. 1,50,000 on the principal amount and Rs. 2,00,000 on the interest.
By asking yourself these questions, you can ensure the home extension process will be hassle-free for you.
If you have your home extension planned out and want to finance it with a loan, Tata Capital can help. We offer loans at affordable home loan interest rates with flexible repayment options. To know more, visit our website.