In our recent blog post about why premium pre-built sheds are most homeowners’ best choice when adding a storage structure to your property, we showed how these high-quality outbuildings are an excellent investment.
After all, premium pre-built sheds that are designed to match your home, have utilities like water and power, and are of a substantial size, may make your property more desirable to would-be buyers when you’re looking to sell. By contrast, many cheaper prefab sheds that you can buy from your local home improvement center may actually detract from your property—which could make your HOA unhappy, among other issues.
But how do you go about buying a storage shed when you don’t have the cash available to purchase your new structure outright? Luckily, there are lots of financing strategies to help you make your backyard structure dreams come true. Of course, as with making any large household purchase, there are questions to ask yourself before signing any financial documents.
Today’s post highlights a few of those common-sense questions to help you decide your best shed purchasing option.
The Big Questions About Your Long-Term Property Goals
As we mentioned above, when done right, storage sheds can make your property that much more marketable when you’re selling. But what if you plan to stay in your home for years to come? Your long-term goals are the best place to start when you’re thinking of adding any detached structure, whether that is a potting shed to support your gardening hobby, a premium chicken coop, or even a portable garage.
How long are my family and I going to be living here?
Because financing plans for storage sheds are typically between 24 months and 60 months in length, you’ll need to think about exactly how long you plan to live in your current home. For instance, if you need a financing term of 60 months, which is five years, you will want to be sure that you’re getting the most use out of your shed while you’re actively paying for it. If you’re planning to move well before five years goes by, you might want to rethink your shed purchasing strategy.
Of course, you may be able to realize a higher resale value on your home because of the presence of that newer shed, but you will still have to pay off the financing when your home sells. Sheds can sometimes move with you, but that incurs costs that often don’t make sense.
Why do we want a storage shed in the first place?
There are so many reasons why people want storage sheds—all of them perfectly valid! You may want to create a trendy “she shed” or “man cave” on your property, make a home gym or office space, or just expand your storage capacity. Before you shop storage sheds, be sure you know exactly what your plans are for your new structure. This will help you know if now is the right time to purchase or if you might want to wait a bit.
Specific Questions About Your Financial Situation
When deciding what kind of shed financing might be right for you, it’s imperative to look at your financial situation. Having a spotless credit history will present different options for buying your shed versus having experienced challenges with borrowing and credit in the past.
How is my credit?
If it is excellent—and you have lived in your home for some time already—you may want to consider a home equity line of credit (HELOC) to finance your shed purchase. Bankrate explains, “HELOCs give you a line of credit to pull from (essentially like a credit card) based on the amount of equity you have in the home. You then pay this back month over month like you do your mortgage loan.”
A HELOC’s interest rate is typically lower than if you want to pay for your shed using standard credit cards or other financing plans. For instance, our financing through RTO National, while convenient and affordable with flexible payment terms, has rates as low as 11.99% with approved credit. A HELOC may have a much lower rate for qualified buyers.
Should I rent to own?
Renting your shed can be a good choice if your credit is less than perfect—or if you are the type of person who needs to be sure your shed purchase is everything you’d hoped before you commit. Discover the details of what renting to own entails on our Financing page, which links to our rent-to-own partner, Nishnabotna Rentals. No credit check is needed to get started with your rent to own storage shed financing plan.
Am I committed to making shed payments for years to come?
As mentioned, shed financing terms typically run between 24 months (2 years) and 60 months (5 years). This means you will be required to make on-time monthly payments for your shed during your chosen payment period. While many financing plans allow for early payoff without a pre-payment penalty, you’ll want to be sure that you’re ready for the commitment involved with making all of your shed payments.
Additionally, you will want to check with your homeowner’s insurance company to see about insuring your shed—your financing partner may require this (and it’s just a smart idea).
Ready to Purchase Your New Storage Shed? Discover Our Financing Options
While the questions in today’s post may be less than fun things to consider when you’re shed shopping, they’re certainly important. If you have worked through these and are ready to bring your new storage shed home here in the Des Moines, Iowa area, it’s time to get in touch with us at Sun Rise Sheds.
All of our premium pre-built structures can be customized to suit your unique needs and represent an excellent investment in your property.