Home Renovation: Saving or Taking Out a Loan?

[Suba]

Time flies, and the house we own and live in begins to deteriorate, leaking, and the paint fading. We realize that it requires significant maintenance and repair costs. Unfortunately, we don't have a budget for home renovations, so when the need arises, we're left in a state of panic.
Our emergency funds and savings are often insufficient to cover home renovation costs. If we save first, the damage to our house will likely worsen and require even greater costs. However, if we take out a bank loan, they'll usually only grant 80% of our loan limit. Which is better?

 

[eLdavis]

At the end of the day, it depends on each individual and their preferences. Personally i would go for savings.

 

[Augusta]

Using savings to fund renovations avoids the extra expense of interest and accumulation of debt, and encourages sticking to a budget

 

[Springtime]

I would go for using savings. You need to pay for interest if you take out a loan. That is additional cost other than the renovation expenses.

 

[Min George]

We want to renovate our family house and we are contributing for it. We don't have the strength to start loan repayments.