I have bought a PPOR house and moved into it recently. Since moving in we have found that there are a few issues which although not strikingly urgent do require urgent attention. I am getting a little stressed out because the list keeps growing.
I have exhausted the majority of my funds to purchase the house. We have done some painting, change light fittings and door handles etc so far which hasn't cost much. Anyway, what I would like advice on is I was thinking of getting a personal loan (which I have been approved for) to complete some of the more pressing and expensive things which need doing to the house. I will also consolidate a couple of credit cards which are currently at 28% interest.
The personal loan is $30,000 and the rate is 17% which is a LOT higher than I estimated. Due to some issues obtaining the home loan I am thinking this could have something to do with the higher rate. Anyway.... the bank says I can revalue the property in 3 months. If I borrow the money to complete the renovation over the next 2 months, I feel the property should increase by at least $30,000. But like everything, there is no guarantee. If it doesn't then at least most of our stuff is in one loan instead of 3 or 4 small credit cards and we will pay off the personal loan asap.
Would you borrow at 17% if worst case scenario you could have it paid off in 2 years and even if property value doesn't increase, you home is now how you want it and my drainage issues along with the other pressing issues are taken care of?
I have exhausted the majority of my funds to purchase the house. We have done some painting, change light fittings and door handles etc so far which hasn't cost much. Anyway, what I would like advice on is I was thinking of getting a personal loan (which I have been approved for) to complete some of the more pressing and expensive things which need doing to the house. I will also consolidate a couple of credit cards which are currently at 28% interest.
The personal loan is $30,000 and the rate is 17% which is a LOT higher than I estimated. Due to some issues obtaining the home loan I am thinking this could have something to do with the higher rate. Anyway.... the bank says I can revalue the property in 3 months. If I borrow the money to complete the renovation over the next 2 months, I feel the property should increase by at least $30,000. But like everything, there is no guarantee. If it doesn't then at least most of our stuff is in one loan instead of 3 or 4 small credit cards and we will pay off the personal loan asap.
Would you borrow at 17% if worst case scenario you could have it paid off in 2 years and even if property value doesn't increase, you home is now how you want it and my drainage issues along with the other pressing issues are taken care of?