Adding space and value to your home by building a garage is not uncommon. These detached structures can be used for the obvious, i.e., for parking a car in it, or they can serve as storage space or even a bonus room. Anyway, when you begin considering the idea of building a garage, you’ll have some questions on your mind regarding how to do it properly, some of which will definitely be related to financing. It’s unlikely that you already have cash ready to be spent on this project, but if you do, then that’s a great thing because you won’t need to think about getting a garasje lån to cover the expenses.
Understanding how much the project will cost and whether you should get a loan for it, as well as figuring out what loan options you actually have when garages are in question, is important if you want to do everything correctly. Financing the entire project out of your own pocket, without having to dip into a loan, would be amazing, but it is often impossible for most people, given that garages can cost much more than what your salary can cover and what you could save over a certain period of time. You probably have a few significant questions regarding garasje loan options, and getting answers to those will lead you to clearly understand what you should do next, i.e., after deciding to build this structure.
How Much Does It Cost To Build A Garage?
Before you can even consider loans or other financing solutions for this structure, you want to know at least approximately how much it will cost to build it. Giving you a precise answer here is impossible because it all depends on the materials you’ll choose, on the size and the design, on the windows and doors you prefer, on insulation, as well as on whether you’ll be doing the heavy work or you’ll hire professionals for it. That being said, building a garage in Norway can cost anywhere between NOK 80,000 and NOK 500,000, or even more. Those are some really rough estimates, but you can do precise calculations once you decide on the size and all the other features that impact the price.
Should You Get A Loan For It?
Is getting a loan for a garage really a good idea? People are used to borrowing money from those financial institutions when buying homes and vehicles and even when funding certain larger purchases, including furniture and similar things. They even tend to get loans when going on vacations or when organizing weddings, or some other events that are important to them. How come it, then, is weird to get a loan for a garage? It can be considered a large purchase, i.e., a large investment, but unlike some other purchases, this one actually comes with an ROI.
In different words, it increases the value of your home, meaning you’ll get a return on your investment. Thus, getting a lån til garasje shouldn’t be an uncommon practice because you can benefit from this structure in more than one way. You can get the space you need to store your vehicle or perhaps use the space for something else while also making sure that the value of your home is increased, and that you’ll be able to increase the price should you decide to sell at one point or another. The benefits certainly outweigh the disadvantages of being in debt for a few years, so getting a loan for a garage is something to be considered.
What Garasje Lån Options Are There?
Understanding that there’s more than one garasje lån option out there will lead to you realizing that you have a few choices to make, but making those choices without being properly familiar with all of the options won’t do you any good. You’ll probably just make a random one and hope that you’ve done the best thing without actually knowing if there could be something better for you on the market. Let’s, thus, introduce you to the two most common garage loan options to consider when trying to make this choice and get the money you require to complete your important project.
The first, and the most affordable one, for that matter, to consider is the option of extending your mortgage. Doing this means you’ll be providing your home as collateral to the lender, allowing them to reduce their own lending risks and thus offer you lower interest rates in return. Nevertheless, doing this without having paid off a good amount of your current mortgage already is impossible. Current rules allow for borrowing no more than 85% of the property’s value. If this doesn’t suit you, don’t worry, there’s a different solution.
Applying for a consumer loan, or to be more precise, for an unsecured consumer loan, is your second option, and people go for it when they can’t take out the one secured with their home or when they simply don’t want to offer their home as collateral. Since the bank will assume higher risks this way, they’ll increase the interest rates, but those will generally be determined by your specific financial situation, meaning you can still get a good offer if you’re financially well, have a good payment history, and have a good credit score. The maximum repayment period for these unsecured garasje lån options is usually five years. Which option you’ll go for depends not only on your financial situation but also on your preferences.
How To Apply?
Applying is the easy part after deciding which solution you want to go for when getting a loan for a garage. It will consist of first finding the lender that offers the option you prefer, i.e., that offers, for example, the unsecured loan solution if that’s the one you want to get. Researching various lenders before choosing one will do you good, of course, since you’ll determine which one has the best garasje lån to offer. After doing that, you’ll simply need to follow their quick application procedures and wait to get approved, which won’t be long.
