I am considering doing a renovation on my PPOR .
The renos are moving the kitchen to a different orientation in the same room, modernising the bathroom, opening the back of the house with big doors, installing a decked verandah, and re structuring the laundry area. Its all moving stuff around within the existing structure so i have worked out it would cost about 50k for all this.
I spoke to the bank and i dont have enough equity to get a straight LOC type loan they have told me i can get a 50k loan that costs me $250 in LMI (an equation based on how much on top of the original amount i borrowed that LMI is required for if I want a 50k loan) and they would draw up cheques to the tradies based on quotes i got.
If I source some of the materials myself, such as oven, stove, dishwasher, lights,flat pack kitchen, toilets, decking etc how does this come into the equation? Do I pay it then they pay me back?
Do they put the whole 50k in my offset acount and I can just draw down from it as needed?
Im still very new to this but in my mind when I thought about this reno I was going to get builders and others in to do specific jobs and manage the reno that way. Rather then get quotes for entire jobs from start to finish including all materials, Is this a bit naive of me?
I read some other threads and people talk about getting personnal loans then when the work is complete get another valuation done for a LOC. The renovations I estimate would increase the valuation of the house by between 80 and 100k.
The renos are moving the kitchen to a different orientation in the same room, modernising the bathroom, opening the back of the house with big doors, installing a decked verandah, and re structuring the laundry area. Its all moving stuff around within the existing structure so i have worked out it would cost about 50k for all this.
I spoke to the bank and i dont have enough equity to get a straight LOC type loan they have told me i can get a 50k loan that costs me $250 in LMI (an equation based on how much on top of the original amount i borrowed that LMI is required for if I want a 50k loan) and they would draw up cheques to the tradies based on quotes i got.
If I source some of the materials myself, such as oven, stove, dishwasher, lights,flat pack kitchen, toilets, decking etc how does this come into the equation? Do I pay it then they pay me back?
Do they put the whole 50k in my offset acount and I can just draw down from it as needed?
Im still very new to this but in my mind when I thought about this reno I was going to get builders and others in to do specific jobs and manage the reno that way. Rather then get quotes for entire jobs from start to finish including all materials, Is this a bit naive of me?
I read some other threads and people talk about getting personnal loans then when the work is complete get another valuation done for a LOC. The renovations I estimate would increase the valuation of the house by between 80 and 100k.
