Installing a new fence or replacing a worn-out one can increase the value of your home and make your property more comfortable and secure. Before installing or replacing a fence, you must ensure you can afford the new fence cost. The price of your fencing project can vary considerably based on materials, size, and style.
The following tips will help you plan and budget for your new fence and help you figure out which type of fence works best for your finances and property.
1. Compare Fencing Materials
Do some research before planning your fence to get an idea of the typical cost of various fencing materials. Some types of materials cost more than others. Aluminum and vinyl typically cost more than wood fences, for instance. You might decide that you prefer the appearance of aluminum or vinyl compared to wood and that you're fine with the higher price tag.
Along with looking at the price of the materials, consider longevity. A vinyl or aluminum fence might cost more than wood, but if it lasts longer, the overall cost can end up being less in the long run. Maintenance is another thing to think about. You might prefer to pay more for a fence with fewer maintenance requirements.
2. Get a Cost Estimate
Before you start the process of getting HOA approval, sit down with a fencing contractor and discuss your project goals and expectations. The contractor can work with you to create a project proposal for your HOA if needed. They can also give you an idea of the total cost of your project, based on the size of the fence and the type of materials you want.
3. Check Your Savings
Once you have a ballpark figure for the new fence, you can start to explore how you'll pay for it. If you have money set aside for home repairs and improvements, check your savings to see if there's enough to cover the cost of the fence. If not, you can make a plan to start saving for the fence.
If you have $1,000 saved, but the fence will cost $2,500, and you'd like the project to begin within six months, you'll need to save $250 per month. You might have to change your spending habits, such as cutting back on non-essentials. Another option is to find a way to increase your income, such as by picking up a side hustle.
4. Consider Financing
Another option for paying for a new fence is financing the project. You generally have two options for financing. You can take out a term, or installment loan, or get a line of credit.
With a term loan, you borrow a lump sum, such as $2,500. You then pay it back over time, such as over three or five years. Your monthly payments stay the same throughout the repayment process.
A line of credit is similar to a credit card. You get approved to borrow up to a certain amount, such as $5,000. You then borrow from the line of credit to pay for your new fence. You might be able to borrow as much as $5,000 but only end up using $1,000.
Lines of credit are more open-ended than a term loan. You can continue to borrow and repay it for as long as the line of credit is open. They typically have variable interest rates, which might be higher than the rate you pay on an installment loan.
Financing your project can be ideal if you don't have much saved or if you'd rather keep some savings in case of an emergency.
5. Leave Some Room in Your Budget
Based on your overall budget and the amount you can afford to borrow for the fence project, come up with a maximum amount you can afford for the project. When choosing this number, aim to make it about 15 to 20% more than the total or estimated cost of the project.
There might be delays, or the price of materials might go up, which adds to the final cost of your fence. You need some breathing room to ensure that you'll be able to pay for the fence no matter what happens.
For example, if the fencing company gives you a $2,000 estimate, budget $2,400 for the total project. You might not need the extra $400, or the project might come in under estimate. But if it goes over, you'll be happy to have the additional funds available.
Working with a professional fence installation company can help ensure your fencing project works with your budget and meets your needs. Set up a consultation with HOA Affordable Fence to discuss your project goals and get a free estimate.
