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Save more & get a smaller loan or go ahead with renovation.

  • 26-12-2022 2:21pm
    Registered Users Posts: 21

    Hi everyone,

    I'm looking for some advice on this as my poor head is going round & round wondering what is best to do. I would really appreciate your input.

    We are planning a smallish extension to the rear of our house, knock down an interior wall to create an open plan kitchen / living area. New kitchen out in, new floors etc... It's badly needed as it is an old older house & we are a growing family. We are currently saving in the local credit union & saving cash on the side when we can. We had hoped to have the work done this summer but it would mean taking out a loan of €30,000 + We will have maybe €28,000 saved ourselves €10,000 of which will be a loan from my Mother who we can pay back over 3 years. We are nervous about getting loan approval from the credit union as my husband is the only one working & is self employed ( which I know can work against you ) he makes an average about €44,000 a year. If we do get loan approval we will have the debt which we can manage but I am now considering holding off until the 2024. It would be hard I'll admit as the house badly needs this work but by then according to my calculations we could have anywhere from €37,000 - €41,000 saved ourselves meaning a smaller loan, less debt. It does sound like a wiser decision & with inflation I'm thinking things could also be better in 2024 with construction costs possibly coming down.

    What are your thoughts? hold off , save more or go ahead as planned?