“Can I save money by borrowing money?” It sometimes happens to an adviser that his conversations are about money. Even in the middle of the summer while eating an ice cream.
Save money by borrowing money, it’s really possible! My conversation partners look at me in surprise. “But borrowing money costs money?” That’s right, but using the borrowed money in a smart way can save you money. Even more than the loan costs you in interest.
The above conversation took place on a sun-drenched terrace. Understandably not the first place you think about insulating your house. But let that be a smart way to invest in your home and save money.
Save immediately with your loan
You immediately see the benefit of an energy-efficient home on your energy bill. And the savings can add up considerably. Did you know that an average family spends around 200 dollars a month on gas, water and electricity?
Insulating the floor on the ground floor can save this family 160 dollars a year. Replacing single glass with high-efficiency glass even yields 250 dollars per year!
Borrow for home insulation
Insulating naturally costs money. But this investment can be earned back quickly. My advice: take out a personal loan for your insulation costs. The interest on a personal loan that is used to insulate a home is deductible from the tax.
Saving greater than the monthly amount of the loan?
Is the saving on your energy bill greater than the monthly amount of the loan? Then your investment immediately earns you monthly money. Later on there is also the money that you get back from the tax authorities.
Borrow and isolate now
The nod where I told my story was nodded in agreement. But actually the thoughts of my conversation partners were more focused on a second portion of ice cream under the influence of the sun. Yet you should think about insulating your house right now. And not only because autumn is coming.
Low VAT rate
A lower VAT rate applies temporarily for labor costs when renovating your house. Instead of 21% you pay 6% VAT on work completed in 2014. In other words: 1000 dollars in labor costs will cost you 140 dollars more next year than this year. Getting started right away means extra savings!
Think about isolating, saving and borrowing money
We ended the afternoon on the terrace with a final round of ice-cold soft drinks. But my conversation partners were made to think.
Want to know more about a home insulation loan?
And what about you? Do you want to know more about borrowing money to insulate your house despite the sun outside? Read more about the personal loan and borrowing for home insulation on our website. Or request a quote and consult with our advisors which is the best loan for you personally.