Renovation Loan Malaysia : How to Finance a Renovation

Renovation Loan Malaysia : How to Finance a Renovation

When thinking about interior design, home renovation costs can be much higher than expected. These costs largely depend on the aspects of the house that are to be improved. If the renovation costs are too high, choosing the means of financing the renovation can be very difficult. The following sections explain the different means which you may apply to finance such a project:





Use your cash at hand or sell your unnecessary assets.


This option is also suitable for low-cost home renovation projects. Instead of interfering with your savings or the accrued interest, you can use the ready cash that you have to fund the project. If your ready cash is not enough, you can consider selling unnecessary assets and use that money to fund the remaining costs.





Borrow loans from financial institutions.

There are 4 types of Bank Loans to renovate your home:

1) Renovation Loan - This loan usually available to apply when you are buying a house and financing your property from the bank. It's bundle together with your home loan. Most of the bank will not entertain for existing home loan customers to apply for a renovation loan.

2) Top up loan - Talk to your existing financier to get extra cash out based on the Current Market Value of your property.

3) Personal Loans - It's available from most of the bank but the interest rate is high.

4) Credit card Cash on Call - Talk to your existing financier to get cash from your existing credit card limit, the interest rate usually is much better than personal loan.




Although this is certainly not the best option, you may be forced to choose it if all the other options available to you cannot fund the entire project. The main problem with this option is that it can raise the costs of the renovation by a very large amount because the loan must earn interest if it is borrowed from a financial institution. It is therefore a wise decision to combine this option with another option. You should use this option to top up the amount that you have raised from another option.

Generally, borrowing loans is discouraged. If you must borrow some loan, you may consider mortgage loans whose repayments are spread over a sufficiently long duration. The advantage of mortgage loans is that their interest rates may be much lower than the interests charged on personal loans.





Image source from: Chimporchamp.Design

How to avoid renovation rip offs

Home renovation project is as important as any other business project one could be having and sometimes it could be challenging especially if the owner do not have the skills to transform the house into what is more pleasing. Fortunately, there are many people with high qualifications in the field of home renovation, décor and interior design who may be of great assistance.

However there are some factors that one should put into consideration before hiring and also when working with a home renovator expert.

Be informed.

Distractions, noise and other inconveniences are usually unavoidable but it is always possible to solve the problem if you and your family are ready for the renovation process. Discuss with the workers working hours when they are comfortable in order to get the schedule that does not affect your way of life.

Ask for a letterhead.

A letterhead further helps one to know the kind of a person you are working with, whether the contractor is a profession or not. This letterhead should lay down any kind of work that needs to be undertaken.

A warranty.

In case of any faults that may be involved in the workmanship, a labour warranty should be available from your renovating professional to take care of it. And this warranty should last for at least twelve months from the date of completion.



Verify everything.

Don’t go by what the renovating professional says, test before acting especially if it’s the first time you are hiring them.

Check the reference.

This should be done especially if you are working with this person for the first time, check out the contractor’s references through recommendations that have been made to him.

Plan to spend more.

One should plan to add more into the budget than the originally planned; this will save you the cost you would have incurred on the forgotten items or plans.

Registration of the renovator.

Ensure that the professional renovator working for you is registered with the business bureau and also call the licensing agency to confirm whether your contractor has a valid license.



Good communication

Good communication for you will help you know the terms and conditions of what you are getting into and this includes confirming all details required, studying the drawings and always asking questions.

All contracts in writing.

Reality is that a good faith agreement could be misinterpreted by a contractor or you and therefore it is always advised that you should get all the agreements in writing to help you get clarity in the event of a dispute and also for future reference.

Don’t pay first.



Wait until all the work agreed in the contract is complete to avoid drama that may occur in case a contractor delays by even failing to show up for work.

Living With Style: Let There Be Light

We all know the incredibly comfortable feeling we get once we step into someone's home and it just feels right. Maybe it’s the pleasant smell all around the house, maybe it’s something about the wall colours, and maybe it’s the way light and shadows make each room look like a fairy tale. Light is useful, it makes us see, but for decades it’s been used for decoration too. Light layers are also very important, so read on to find out what are the best ways of lighting a room.




Choosing the best lightning design for each room
Degrees of light in one room can really make a difference. Having a bright overhead light on an intimate dinner party lowers the atmosphere, and kills the romance. On the other hand, having a single lamp in a room where you’re writing, drawing and/or reading can hurt your eyes and exhaust you.

Lightning to use in your living room
First of all, you will need one main source of light (ambient light) which will cast light to all parts of the room. However, that will not be enough, and we suggest you add directional light to it (accent lights) which will visually separate your room into smaller sections. Chandelier as a main source of light should not be too bright so as not to make people’s eyes hurt, while accent lights such as smaller lamps or sconces should be up to five times brighter. If there is a beautiful painting or a big pant you are proud of in your room, try putting a spotlight near it so it attracts everyone’s attention.




The best solution for your workspace
At the place where you will be working, you don’t need romantic atmosphere; instead opt for lightning that will make it easier for you to see what you are doing. Ambient light is necessary but you also need additional source of light (task lighting) which could be up to ten times brighter. On the other hand, if you chose good task lighting, maybe you will not even need overhead lights. Desk lamps or floor lamps trained on a desk are the most convenient choice for your office because they will provide clean light and allow you to see clearly what you are working on.


Light for children’s room
Children want to have fun all the time and are always searching for a way to turn everything into a game. Having that in mind, it will not be too difficult to pick the best possible lighting for their room. There are so many creative solutions that the bigger problem will be picking just one for your child (and trying real hard not to pick one for yourself as well). Pick funny lamps shaped as characters form video games and add night lights in the shape of clouds. It will make them feel safe during the night and it will look good on the walls too.




Light layering means having different light sources in a room and each of these should cast different kind of light. Having nothing but direct light sources in a room will make it seem dull, flat and uninviting. Introduce contrasts and shadows in a room to create a place of ultimate comfort.



Article from: JohnStone (Renof's member)
Image Source from: Floor lamps Flickr