WHAT DO LOWER INTEREST RATES MEAN FOR RENOVATION BUDGETS?
With some banks negotiating as low as 4.25% a valid question is “what does this mean for my renovation budget?”
The short answer is: “It depends on your long term plan and your unique financial situation.”
Interest rates are very low now by historical standards. So it may be beneficial to perform more comprehensive renovations if both:
1. Your renovations are adding value and
2. You plan to sell your property in the next 2-3 years.
But the 2 year interest rate has actually averaged 7.1% since the year 2000. So if you’re planning to keep your house long-term you need to ensure you can cope with possible interest rate rises.