Mr. Hutch and I are on the home stretch with our rental suite. The drywall is up and is being mudded and taped this week. Next week it will be painted and then we can lay the flooring. After that we can install the kitchen and bathroom fixtures and button up all the finishing work. We may just reach our deadline of the end of this month.
We're also on the home stretch financially. We financed this renovation by remortgaging our home and pulling out our equity. We knew all along that the amount we could access would make a really good dent in our renovation, but it wouldn't fund the whole thing. The plan was to remortgage again once everything was complete, in effect accessing the equity we'd just added to our home by building the suite.
We're now at the point where the total bill for all the work left to be done outweighs the cash we have on hand. It's not the most comfortable spot to be in. We're playing the long game though, and trying to keep everything in perspective. We chose to put ourselves in this risky position but we're banking on a big payoff, long-term.
Before we started this renovation, our house was appraised at $513,000. Now we have to cross our fingers that the new appraisal will come in at $560,000 in order to get the equity we need to pay the final bill. We'll have sunk in the neighborhood of $70,000 into this renovation, so on paper it seems like it should work. But it's a risk. In reality, I'm not sure we would have got $513,000 for our house had we decided to sell it. Just the same, I don't know that we'd get $560,000 for it now that it has a suite. It's a game though, the appraisal business. It's has an aspect of correlation to market values but at the end of the day, it's just someone's opinion. And opinions can be subjective. We'll just have to wait and see where the final numbers fall.
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