How to finance decor upgrades in your first home

So, you've got the keys to your first home - cue the excitement! Now that the echoes of "home sweet home" are settling in, it's time to think about making it uniquely yours. 
Decor upgrades can breathe life into your space, but for many first-time homeowners, the challenge lies in finding the right financial approach to turn those dreams into reality. Here are practical tips to get you started on your journey.

Decide if it's worth your rands: While some decor upgrades can make a difference to your lifestyle immediately and increase your home's value, some may just not be worth the time and especially the investment. Look for upgrades that improve curb appeal, cut back on your bills, or fix issues that could become a bigger cost in the future.

Put a budget together: By outlining all the material expenses and services needed for the upgrade, you will know exactly what you're potentially in for. Shop around for a range of quotes and product prices and ensure you're getting the best deal possible. An overview of costs will also help you decide if you're ready for the upgrade or need to save up a bit further.

Renovate over time: As a first-time homeowner, it can be easy to get lost in the thrill of getting a foot on the property ladder. Be patient. Unless you've bought a complete fixer-upper, it makes more sense to focus on partial makeovers and spread out the expenses of your updates.

Start saving smartly: The bottom line is that using your own funds is the best way to finance your renovations. Being disciplined and stashing a portion of your monthly earnings will serve you well. You should look into the investment options banks offer that can help you maximise the interest returns you get from your savings.

Foot the bill with equity: Home equity is the amount of your home that you own, as you make bond payments. You can borrow against this as collateral to secure a home loan. The major benefit is that this type of loan usually has lower interest rates compared to other loans and you'll be able to secure a large sum of money upfront.

Apply for a personal loan: If you qualify, you may be able to fund your renovations using a personal loan from a bank. Lenders will evaluate your credit score, risk profile, and income when deciding if you're a candidate. You can use a free personal loan comparison service like MyLoan.co.za to find the best deal.

Look for home improvement loans: There are loans on the market that are specifically designed for enhancing your property, whether you're building an extension or simply refurbishing. Nedbank, for example, has partnered with hardware and home improvement stores to offer in-store personal loans for home improvement. You can get an accurate figure of the cost of materials and supplies you'll need for your project. Furthermore, you can opt for a split disbursal to apply for a loan to cover both the costs of the materials you need as well as any additional costs.

Use credit cards responsibly: If you can keep up with payments, turning to credit could be the answer. Check if your bank offers an interest-free period to give you time to pay off the amount quickly and offer cash-back rewards. Store credit cards may offer less flexibility, but can sweeten shopping with promotions and cash-back rewards on certain purchases.

Get into thrift shopping: Besides visiting thrift stores and craft markets, look into companies that salvage and sell second-hand building materials. These can help you fund your project at a competitive price. If you have the know-how, you can even DIY minor projects yourself for additional savings.

Shop during sales: For improvements that can wait, it could pay off if you time your renovations wisely. Certain periods like Black Friday offer great sales, discounts, and promotions.

Cash in on rewards: Many home improvement stores such as Built it and Mica offer loyalty programmes that can come in handy. They can provide cash-back rewards or store points that can be used towards purchases. With loyalty cards in hand, you may also qualify for special promotions, exclusive events and workshops, and personalised product recommendations that can help you make better choices and save further.

Negotiate with contractors: If your upgrades involve hiring contractors, negotiate pricing or explore financing options they may offer. Some contractors even provide instalment plans for their services.
Decor upgrade FAQs

1. How much money do you need to upgrade your home?

The costs of upgrading your home can depend on the scope and scale of your project. There are many factors to consider, including the cost of materials and labour, current market conditions, your location, and whether you will DIY the project or use professional services. For extensive building renovations that impact the structure of your home, you will need to have the building plans approved by your local municipality and this will incur costs. You may also need to budget for unexpected expenses.

2. What should you upgrade in your home first?

Deciding what to upgrade in your home first depends on various factors, including your needs, priorities, and budget. Experts do advise focusing on structural issues, especially as this can impact your home's functionality, safety, and resale value. Putting this off for later can also cause the problem to get worse and, potentially, more costly in the future. 

Home is your story
As a first-time homeowner, smart moves can ensure you make this chapter a happy one. To help you on your journey, sign up for Seeff's Home Story blog for home ideas and advice. We take pride in being your local real estate experts and are here to assist if you decide to sell or rent your home at a later stage.