How to Update Your Home Without Going Over Budget

Home renovation often requires substantial investments, making it an increasingly common reason for seeking loans. Statistics show that in the first half of 2023, the number of loans taken for home improvement in Lithuania increased by about 15% compared to the same period in 2022. Additionally, 60% of people who take out loans for home renovations do so to increase their property’s value.

According to Gabrielė Monika Žemaitytė and Laura Marija Mačiulienė, founders of "MM Studio," a well-executed home renovation is an important investment that significantly increases a property’s value while enhancing the quality of life, personal well-being, and daily efficiency. In today’s fast-changing world, where technology and lifestyle evolve rapidly, interior design also demands flexibility and creativity. Effective planning, smart budgeting, ergonomic principles, and style choices are essential in creating a space that reflects the homeowner's needs and personal style. Regardless of the home size or budget, careful planning with these principles in mind can result in a space that elevates everyday living.

Signs It's Time for a Home Renovation

It’s worth considering a renovation if your home shows signs of aging or wear and tear.

“Worn floors, faded walls, outdated ceilings, or old plumbing are all signals that it’s time for a refresh. Neglected issues like mold, old wiring, or drafty windows can lead to more serious problems,” the experts note. They also emphasize that renovation is essential when the layout no longer meets current needs, equipment is outdated, or the interior doesn’t inspire anymore. Finally, a home update can be especially valuable if you plan to sell the property, as a renovated home often has a higher market value.

Home renovation projects can range in scale, from small changes, like new furniture or lighting, to complete overhauls of interior design.

"The kitchen and bathroom are the two most important spaces in any home," say the interior designers. "A modern, functional, and aesthetically pleasing kitchen can transform the entire look of an interior. Meanwhile, a bathroom renovation can create a stylish and visually appealing space. Upgraded plumbing, improved ventilation, and contemporary design are all highly valued aspects in a home."

Creating Coziness with Natural and Practical Solutions

Today’s interior design focuses on aesthetics and functionality. The designers note a growing interest in natural, recycled, and eco-friendly materials. Clean, minimalist designs with simple lines and neutral colors are trending, aiming to reduce clutter and avoid excess.

“The goal is to create a timeless style that will remain relevant for years,” the specialists explain. For cost-effective renovations, it’s essential to establish a clear work plan, set a realistic budget, and allocate an extra 10-20% for unexpected expenses. Consulting an interior designer can help prioritize tasks, identify what’s worth preserving, and highlight areas where savings are possible.

Interior specialists suggest investing in long-lasting solutions like quality flooring or tiles, plumbing, and smart home systems, while repainting or refurbishing valuable items like cabinets and doors. Used furniture and flea market finds can also be a great way to save money.

As homes are increasingly adapted for various activities, modern solutions, such as smart lighting, security, and devices controlled via mobile apps, are more common, emphasizing comfort, sustainability, and personalization. These additions ensure a home is not only beautiful but also functional, aligned with the owner’s values and modern lifestyle needs.

Growing Needs, Increasing Investments

Kamilė Dijokaitė, Inbank’s Loan Product Sales Manager, confirms that home interior updates have become a prominent investment and a frequent reason for loan requests. According to Dijokaitė, the average financed amount in this sector in the first five months of this year exceeded €5,000, a 12% increase compared to the same period last year.

Over the past few years, the increase in both new contracts and the average financed amount reflects a growing interest in home renovation.

“People are increasingly willing to finance larger amounts for renovations,” observes Dijokaitė. “This clearly reflects their desire to modernize and adapt their living spaces to contemporary standards and personal needs, thereby enhancing comfort and property value.”

Seasonality is also very evident in this sector. Home renovations are typically carried out in the spring and summer, when conditions are favorable for larger projects. Dijokaitė notes that the majority of borrowers are married individuals, typically aged 31-46, with families.

Representatives from UAB "BIKUVA" also affirm that home renovation has become a significant investment.

“Our data show that average spending on home renovation ranges between €10,000 and €15,000, while apartment updates typically cost between €3,000 and €8,000. The most common purchases for home updates include flooring, such as laminate, vinyl, floor tiles, and materials for wall and floor renewal. Additionally, people often replace appliances and doors,” they highlight.

About Inbank

Inbank is a fintech company with an EU banking license, connecting merchants and consumers by offering next-generation financing solutions. Inbank has been operating in the finance sector since 2010, and its loan portfolio currently amounts to €1.03 billion. Partnering with over 5,400 merchants, Inbank provides leasing, consumer loans, and deposit services in Lithuania, Estonia, Latvia, Poland, and the Czech Republic. It also accepts deposits from Germany, Austria, Finland, and the Netherlands. Inbank's bonds are listed on the Nasdaq Tallinn Stock Exchange.