You’ve got the money and started improving your home. Suddenly, disaster strikes without warning. Has the roof fallen in? Is the contractor a cowboy? No. It’s worse than that because you’ve run out of money halfway through. There are weeks of building left and tens of thousands of pounds to spend before you can enjoy what you’ve created.
It’s the worst-case scenario for property owners as it leaves you in limbo. It’s not as if you can move in, but you can’t leave it to waste money, either. For those who feel like they’re at their wit’s end, here’s what you should do.
Boost Your Budget
The simplest-yet-hardest solution is to boost your budget. Even if you don’t have the funds to complete the project, you can focus on the essentials. Your first port of call should be your lender if you’ve taken out a loan. If they don’t bridge the gap, credit card and payday loans companies could help you raise the cash, as long as you understand your exposure. Or, if you’re lucky, the bank of mum and dad could save the day yet again. Every person’s initial reaction is to say they can’t raise the money, yet you will find suitable revenue streams when you explore the options.
Prioritise Work
Unfortunately, your earning power and savings are limited. As a result, you can’t find a significant amount of money to add to your budget, which means you need to try a different avenue. The best compromise is to rank the work based on its importance. You can then channel the resources to the features that require completing asap, while the rest of the house takes a back seat. It’s not ideal, but it’s better than having a room or property with no running water or electricity!
Find A Coping Mechanism
A coping mechanism isn’t what you want, but it’s what you have, so there’s no point in being angry. Instead, you should think clearly and create fixes to problems that already exist. An excellent example is to set up a pantry area if the kitchen resembles a warzone. At least you can store food and prepare it elsewhere in the house if you move the microwave to another part of the property. Also, if the gas is connected, you should be able to use the hob. You won’t have the oven, yet it’s possible to get by without it.
Rent It Out
Real estate investors want everything to be perfect before they list the property with an estate agent. After all, it’ll demand a higher rental value if it’s flawless. However, as long as the major work is done, there’s nothing wrong with finding tenants. Just list it as an unfurnished flat or home, and inform them that they have to bring their own. The rental price might drop, but it’s better than leaving the building to its devices while the mortgage eats into your emergency fund.
What should you do when you run out of money mid-renovation? Don’t panic because there is always an answer.
