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value of your home is disingenuous if you intend
to keep living in that house after the remodel is
If you were planning to flip the home, all those
lending options become much more acceptable.
Since the debt you incur will be wiped out by the
sale, a good loan can actually be used to make
Unfortunately, homeowners twist this logic to
pay for a fancy new bathroom that only they will
And, of course, lenders make it very appealing
to get money for your remodel. I just put a piece
up on about five ways you can finance your
home renovations if you really need to make
some changes.
From cash-out refinancing to borrowing from
your 401(k), you have plenty of ways to pay a
In each case, however, you¡¯re stealing from
Peter to pay Paul; in this analogy, Peter is your
When you finance home improvements, you put
future dollars toward interest payments instead
of investments.
Invested money will grow, compound and con-
tinue to deliver returns, whereas a refurbished
kitchen will only make a significant financial dif-
ference if you sell immediately.
Otherwise, it¡¯s just a cooking space that you use
and devalues through wear and tear.
If possible, try to pay for any renovations with
cash. If you can wait and save, you¡¯ll be much
better off than if you take out a second mort-
gage and increase your monthly repayments.
I understand that circumstances will dictate
how long you can put off the work, and if you
have no choice but to borrow to fix a leaky roof,
sometimes those are just the breaks.
The goal should always be to cover your expens-
es with money you already have.
No matter how good the rate is on your loan,
you¡¯re decreasing your investment potential
when you have to make payments to the bank.
Hope this helps!
Golden Windows
Little Molly lived in a small beautiful town.
Her tiny house is constructed on the banks of a
beautiful river, near the mountain.
She was the only daughter for her parent. Al-
though they weren¡¯t very rich, they lived happily.
Her house was surrounded by huge trees and
beautiful plants. It was a single bedded house,
made of wood.
Molly did not like her house very much.
She felt that the house was too small and not
very neat.
Little molly was very fond of the mountain. Up on
the steep and sloped mountain she could see a
beautiful, but abandoned, castle-like home with
golden windows!
Yes, she liked the home on top of the mountain
because of the glittering golden windows. The
windows sparkled and glazed so beautifully that
little Molly was always completely mesmerized.
She went crazy for the glittering golden windows
and she started to hate her home ever more.
However, little Molly was so sweet and she under-
stood the struggles her family was undergoing. So
she accepted everything silently.
Still her desire went on growing and she spent
most of her time daydreaming about living there
Years passed by and she grew up quickly. She
became 12 years and looked very beautifully like
a golden princess. She believed that she is sup-
posed to live in a house with golden windows, not
in an old wood house.
As she has grown older, her mom now allowed her
to move around beyond her house.
It was holidays for Molly and she requested her
mom that she wanted to wander in the garden
near the river. Her mom also agreed and told her
not to go too far.
Despite her mom¡¯s admonition, Molly decided to
climb the mountain and peek into the house with
the golden windows.
She took her bicycle and started her journey
towards reaching the top of mountain. She found
a narrow road in the mountain towards the
abandoned home in the mountain. With so many
struggles, she excitedly reached the top of the
She was so shocked, however, to find the dirtiest
house, a damaged castle with dark windows!
What she used to see from her home wasn¡¯t
there, on the mountain. Yes, the golden windows
she saw from the lap of the mountain were in fact
the reflection of the sun off the dark and dirty
She was very upset and sat quietly for some time
as she lost words. Her long time dream and desire
had disappeared in an instant.
Suddenly, she looked at her home.
Two old friends crossed paths after not seeing
one another for almost a decade.
Friend 1: ¡°What are you doing these days?¡±
Friend 2: ¡°PHD.¡±
Friend 1: ¡°Wow! You¡¯re a doctor?¡±
Friend 2: ¡°No, Pizza Home Delivery.¡±
Two old timers were talking after church one
day and the one asks the other, ¡°So tell me
brother, what did you think of the soul food
this morning?¡±
The other replies, ¡°The food was excellent, but
the service sucked!¡±
The Reading Room
2020 February/March
Pg 5 - The Sunshine Express
Treasures From The Inbox
If you get email, you
get stuff. Sometimes
it is spam, sometimes
it is a true gem.
Here is one of those
gems worth sharing:
Is a Home Equity Loan
a Good Idea?
Hey Taylor - Is it worth taking out
a loan for some home renovations? I don¡¯t want
to take on more debt but I¡¯ve been thinking I
could go with a home equity loan and get the
work done without paying too much interest. -
Hey Kylie - Those loans can look pretty tempt-
ing, can¡¯t they? I always advise against taking
on debt to buy a non-asset, so my short answer
is no, it¡¯s not worth borrowing.
My longer answer will hopefully make my rea-
soning clear.
A lot of importance gets placed on resale value,
but it really shouldn¡¯t matter unless you¡¯re about
to sell your home. To justify taking on debt and
making interest payments by citing the resale
The Eyes of Love
A grandmother and a little girl whose face was
sprinkled with bright red freckles spent the day
at the zoo. The children were waiting in line to
get their cheeks painted by a local artist who
was decorating them with tiger paws.
¡®You¡¯ve got so many freckles, there¡¯s no place to
paint!¡¯ a boy in the line cried.
Embarrassed, the little girl dropped her head.
Her grandmother knelt down next to her. ¡®I love
your freckles,¡¯ she said.
¡®Not me,¡¯ the girl replied.
¡®Well, when I was a little girl I always wanted
freckles,¡¯ she said, tracing her finger across the
child¡¯s cheek. ¡®Freckles are beautiful!¡¯
The girl looked up. ¡®Really?¡¯
¡®Of course,¡¯ said the grandmother. ¡®Why, just
name me one thing that¡¯s prettier than freckles.¡¯
The little girl peered into the old woman¡¯s smil-
ing face. ¡®Wrinkles,¡¯ she answered softly.
Go Far With Kovar
Two Old Jokes
A window on it was shining like gold!
She realized that the sun rays reflecting off
of the river water makes the windows on her
own home glow golden.
The truth was, she already lived in her dream
home, the home with beautiful golden win-
But she had realized it too late. What she had
dreamt of for years, just vanished away in the
window of time.