Do your need to revamp your home to include a jewelry store? You may want to add a store or a shop for your jewelry business like Butterfly Jewelry right in the comfort of your home. To do this, you will need to do major renovations and a reasonable budget. In this post, we give you ideas on how to stretch your renovation budget.
Ideas to Revamp your Home to include your Jewelry Business
A warm and comfortable home doesn’t have to be priceless. However, the cost of a renovation can quickly add up especially if you need to add in a workshop for your business needs. The financial threshold often prevents potential buyers from purchasing a home with high renovation needs or from thoroughly energetically renovating the current home to meet today’s comfort needs. Yet NOW is the time to renovate. There are various financing options that are little known but offer many possibilities. Renovating has never been so easy.
Reinstatement of mortgage loan
Do you have a mortgage loan and has it been (almost) paid off? Then this is an excellent time to plan your renovations. Reuse your existing mortgage for your new renovation project and enjoy several financial benefits. This way you avoid notary and mortgage costs and your monthly budget is not burdened with an extra payment.
The interest-free renovation loan Did you buy
property in 2021? Then you can make use of the interest-free renovation loan from the Flemish government. Anyone who buys a house with poor energy performance and significantly improves its energy performance within five years can also take out an interest-free loan of up to 60,000 euros for its renovation in addition to the mortgage loan for the purchase of the property. Demolition and reconstruction are also eligible. The renovation loan is interest-free as the interest is automatically repaid once a year.
Review of the mortgage loan
In some cases, it is interesting to review your mortgage loan. For example, when interest rates fall. Borrowing at a lower interest rate results in a lower monthly payment, which frees up money that you can use for a renovation loan. You can review your mortgage loan at your own bank or at another financial institution. Due to the costs involved, a revision of the mortgage loan is only worthwhile from 1% interest profit.
The EPC label premium
Anyone who owns a house or apartment with a poor energy label can apply for an EPC label premium. This premium can rise to 5,000 euros if you significantly improve the energy label of your home within five years. You do this by providing your home with renewable energy and solid insulation, for which you can also receive a premium. To make an estimate as realistic as possible, it is best to seek advice from your architect, from the energy expert who has drawn up the EPC for your home, or from an Energy House.
Extending
the term of your mortgage When you extend the term of your mortgage, you reduce the monthly amount that you have to pay off. In this way, space is created for a renovation loan without much impact on your monthly budget. Your monthly payment charge remains the same.
The Flemish renovation
premium You can also apply for an umbrella renovation premium for the renovation of your home. This premium was created by the Flemish government to thoroughly renovate non-energy buildings. Please note, to be eligible for the premium you must meet certain conditions.
Advance on the supplementary pension for employees
When you take an advance on your supplementary pension (2nd pillar), your bank or insurance office will pay you a certain sum that you can use for the purchase and renovation of your home. This way you do not need to include your savings in high-yielding investments.
Temporary 6% VAT for demolition and reconstruction
Not every building is suitable for renovation. Sometimes demolition and rebuilding are more interesting. The reduced VAT rate of 6% for the demolition of buildings and the reconstruction of homes will be extended to the entire Belgian territory in 2021-2022. Projects by principals-natural persons as well as those by construction promoters are eligible.
Reduced sales right in the event of a Major Energetic Renovation ( IER )
When you carry out a Major Energetic Renovation ( IER ) of your home, you can invoke a reduced sales tax of 5% for your sole and owner-occupied home. Such a renovation has 2 conditions. The generator for heating or cooling must be completely replaced and at least 75% of the existing and new partition structures that enclose the protected volume and that adjoin the outside environment must be insulated.