Whether you’re an entrepreneur who’s starting a new business venture from home, or you’re looking to operate a home-based business as a therapist, tutor, day care provider, or bookkeeper, you’ll need a private workspace to meet with clients and get your job done — especially if you’ll be seeing patients and handling confidential information. However, deciding between renovating your current home and purchasing a new house with additional space for your home-based business isn’t always straightforward. For some advice on creating or finding the perfect space for your home-based business, read on!
Buying or Renovating: Which Is Right for You?
If you need a private space for your home-based business, you’ll need to renovate your current home or buy a new house with enough square footage and storage for your business needs. When making this decision, be sure to factor in moving and renovation costs and additional expenses like office furniture, supplies, hardware, lighting, shelving, and anything else you’ll need to operate your home-based business. Additionally, you’ll want to consider the pros and cons of moving and renovating.
Renovating is typically better than moving if you have an emotional attachment to your home, can afford to remodel, or wouldn’t make a whole lot of money on the sale of your property. However, home office renovations are typically expensive if you need to add onto your home to create space for your home-based business. If you can convert a spare room, garage, or basement into a private area for your home-based business, this may be cheaper.
If converting a room or building an addition isn’t the right choice for you, it’s important to check the local housing market before deciding whether to buy a new house that can be used to run your home-based business. Be sure to research home prices in cities and neighborhoods that will allow you to purchase a house that is in your budget and meets your space and storage needs (home sales in Baton Rouge average $215,000). When choosing a location for your home-based business, you’ll also want to keep demographics, parking, foot traffic, accessibility, and your local competition in mind. Once you’ve decided to buy a home, be sure to consult a top-rated and skilled realtor like Joseph Dupard who knows the ins and outs of the Baton Rouge real estate market.
Paying for Your Home Renovations
If you’ve decided to build an addition or convert part of your house into a space for your home-based business, several financing options may be available to you. To free up some cash for your home renovations or upgrades, for instance, you could refinance your mortgage. While this is a popular option for many homeowners who wish to renovate or remodel their houses, it’s important to understand your options and familiarize yourself with the refinancing process before deciding whether a refinance will be right for you.
Several common types of mortgage refinancing options include:
● Cash-out refinancing.
● Rate and term refinancing.
● HELOC refinancing (home equity line of credit).
● FHA to conventional loan refinancing.
If you have enough equity in your home, for instance, you could use a cash-out refinance to pay for your business renovations and upgrades. As an alternative to refinancing your mortgage, however, The Spruce recommends funding your renovations through cash and liquid assets, a local home improvement loan program, or a home equity loan.
Enjoy the Perks of Working Out of Your Home
Once you have a private space set up for your home-based business, you’ll be on your way to experiencing the many perks of working out of your home. From the tax advantages to minimal overhead costs and greater flexibility in your schedule, there are many great benefits to starting a home-based business — and this guide will help you to create the perfect office space for your specific needs and requirements.