Work-from-home is more than just a pandemic-induced trend. In many professional industries, working from home has become the new normal.
Roughly one-quarter of all professional jobs are now work-from-home, and that number continues to grow.
Missing out on all the water-cooler gossip isn’t the only drawback of working from home, however. If you’re new to working from home, your home office may pale in comparison to your cubicle or desk where you last worked onsite.
AmOne created this guide to personal loans for home office improvements to give remote workers insight into many of the leading home office renovations, additions, and upgrades.
We’ve also provided average costs on home modifications and office upgrades to help you get an idea about your total capital expenditures as you strive to create the perfect home office.
Why a Personal Loan for Home Improvement?
Creating the perfect home office environment can be expensive. Unless you are able to tap into savings, you’ll likely have to pursue some type of financing, especially if you opt for a big-ticket home improvement renovation, such as a room addition for your home office.
Here are some reasons why a personal loan may be the best option to fund your home office improvements:
You have good credit and can get a good interest rate
Creditworthy borrowers with above-average and high FICO scores are likely to have an easy time securing funds from online and traditional lenders.
Interest rates on personal loans are often favorable — sub-10% or better depending on your credit score. For instance, a personal loan for $10,000 at 7% interest would generate a payment of $308 over three years and cost just $1,115 in interest if the loan was taken to its full maturity date.
You don’t want to use your credit cards
While credit cards are revolving credit, personal loans are installment loans. This means that credit card interest rates and payment amounts may fluctuate, but personal loan interest rates and payments stay the same until it’s paid off.
High interest rates on credit cards can make it difficult to pay off large balances and major purchases.
Qualified borrowers could save thousands in interest by taking out a personal loan rather than using credit cards to finance home office improvements.
You don’t want to take out a second mortgage or HELOC
Rising federal interest rates have crippled the mortgage refinance industry, making it difficult to cash out the equity in your home. A home equity line of credit is a second option, but if you want to avoid that route altogether you could consider a personal loan instead.
You want a fixed monthly payment
Personal loans aren’t like other forms of revolving consumer debt, where payments vary depending on fluctuating interest rates and balances.
With a personal loan, you’ll have a fixed interest rate, a set repayment amount, and a hard date to finish paying off the loan. You’ll know exactly what financial conditions need to be met in order to repay your personal loan, and the terms will never change.
As a closing thought, keep in mind that just because you qualify for a certain amount doesn’t mean you need to borrow that much.
Finance only what you need to fully fund your home office renovations, office upgrades, and additions in order to keep your loan payment as low as possible.
Use our installment loan calculator to determine your payments based on your interest rate and how much you want to borrow.
Home Modifications to Accommodate Working Remotely
The kitchen dining table hardly qualifies as an appropriate workspace for full-time remote workers.
In addition to a dedicated space within your home, you’ll likely need to make some modifications, alterations, or additions to existing space to create a good working environment.
Here’s a list of our eight most-important home modifications to accommodate a remote workplace:
Hardwood flooring
Your home office sees a lot of foot traffic, even if you are parked in front of the computer most of the time. Hardwood flooring not only looks elegant, but it also is much more hypoallergenic than carpet because it doesn’t trap dust, dander, and other allergens. It’s also very durable and can better withstand the weight of your office chair.
Cost: $6 to $12 per square foot on average.
Built-in workstation
If you have to spend the majority of your time in your home office, you may want to consider having a licensed carpentry firm install a customized built-in desk, countertop, and bookcase.
You could even add new baseboards and crown molding in your office for an ultra-stylized custom home office setup.
Cost: Approximately $150 to $1,200 per linear foot depending on your choice of materials, desired level of customization, and contractor labor rates.
Partitioning a room
There are many different ways to partition a room so you can properly set up a home office.
Wooden screens and curtains are an inexpensive option, but adding a dividing wall in a larger room will create a much more separate and dedicated workspace.
Cost: $2,500 to $6,000 depending on size, location, and extent of additional work such as electrical, trim, and paint.
Room addition
Sometimes the only way to create a truly functional workspace in the home is to add another room.
It’s a big job, though — you’ll have to have a licensed contractor perform the work, and the job will have to be fully permitted by your local building authority since you are making changes to your structure.
The upside is you can design the space any way you choose rather than trying to make an existing space in your home meet your needs.
Cost: $18,000 to $35,000.
Convert garage into a home office
If you don’t mind losing the space for your lawnmower and garden tools, you may be able to convert a portion of or your entire garage into space for a home office.
You could always build a shed in the backyard to house displaced objects. You’ll likely have to add lighting, security features, cabinetry, and other office essentials to fully transform the space.
Cost: $5,700 to $24,000.
Modular studio shed addition
A customizable modular 10-foot by 12-foot studio shed may be just what you need to tick off all the home-office checkboxes.
These structures are much more affordable than full-room additions, and you likely won’t need to secure a building permit if the structure is smaller than 120 square feet.
Cost: Starting around $20,000 for prefab units. A local general contractor may be able to significantly beat that price for a stick-built structure.
Paint
A warm paint scheme in your home office can help increase productivity, lower stress, and enhance energy levels.
Cost: Between $350 and $850 for a 12×12 space.
Lighting
Good lighting is essential for your health and productivity.
Poor lighting in your home office can cause fatigue and headaches, and it puts needless strain on your eyes. You could add some floor lamps or install additional ceiling lighting to illuminate your workspace properly.
Cost: $75 to $125 per fixture.
8 Essential Remote Working Office Upgrades & Additions
Maintaining a high level of productivity is crucial when working from home.
You’ll likely find yourself surrounded by major distractions, such as the neighbor’s constantly barking dog or your favorite Xbox game, or minor hindrances like a poor setup for your workstation.
Keeping your concentration razor-sharp and not letting anything derail your output will keep you working for longer periods and meeting more deadlines.
Here’s a list of eight essential remote office upgrades and additions to consider to help create a next-level workspace:
A good desk
Your workday starts and ends at your desk. A high-quality desk lends itself to greater professionalism, organization, ergonomics, and comfort.
You may want a sit/stand desk to break up the monotony of sitting, or a more traditional setup. Don’t skimp – your corner, executive or computer desk is the backbone of your work-from-home setup.
Cost: Big box office retailers sell decent executive desks starting at $350. Costs could easily top $4,000 for a higher-end desk with a wall hutch, though.
A good chair
Work-from-home jobs often require sitting in front of a computer for long stretches of the day.
Nothing beats the comfort of a high-level ergonomic office chair.
Poor-quality office chairs lack the rigidity needed for optimal posture support, which helps ease back, neck, and hip pain and also improves circulation.
Like any tool, the more you spend on your chair, the better the quality.
Cost: Expect to pay anywhere from $500 to $2,000 for a top-notch ergonomic chair.
Dual (or even triple) monitors
Try this: Spend an hour working on your laptop, then spend another hour working at your home workstation.
Likely you’ll find that the additional visual real estate that a 27-inch (or larger) monitor offers allows you to easily stack and navigate through different windows, increase productivity and organization, and simply get more work done.
Once you create a dual-monitor setup, you’ll never go back.
Cost: $250 for basic but functional monitors, to around $600 for higher-end monitors.
Extended wireless keyboard
Wireless is more of a personal preference, but the less cabling cluttering your workstation the better.
Regardless, an extended keyboard that feels comfortable under your fingers is incomparable to that cheap plastic-cabled keyboard that came with your computer. Feel free to upgrade.
Cost: $50 to $200.
Wireless mouse
Just like your large monitors and extended keyboard, a good mouse increases productivity and makes navigating windows a breeze.
Going wireless removes yet another cable from the tangled mass.
Cost: $20 to $100.
Noise-canceling headphones
Eliminating distractions is one of the main priorities of working from home.
Over-the-ear noise-canceling headphones allow you to quickly find your inner Zen and stay in that productive space. As always, opt for a wireless model.
Cost: $100 to $350.
New laptop
There are days you’ll just want to get out of the house.
Taking your laptop to a local coffee shop or library allows you to get a much-needed change of scenery while still producing. Pro tip: a good-sized tablet functions like a second monitor and increases productivity.
Cost: $400 to $1,000
Fast wifi
Reliable high-speed internet is as essential as any item mentioned above. Your internet provider likely has many plans from which to choose. Opt for 25 mbps or higher to ensure you have adequate bandwidth at all times.
Cost: Varies by the provider, but it shouldn’t be more than $50 to $75 per month.
Many of these items will set you back quite a bit financially, but if you fill out Schedule C of your Form 1040 when you prepare your tax return you will be able to depreciate these business-related expenses.
Frequently Asked Questions (FAQs)
Here are some commonly asked questions about preparing your home for remote work.
What does it take to qualify for a personal loan for home improvement?
Requirements vary by lender, but you’ll need a good (670-730) to fair (580-669) credit score and documented income. Some lenders may look at your existing debt obligations, especially if you are trying to take out a large personal loan.
How much can I borrow with a personal loan if I plan to use the funds for remote work improvements?
Your credit score and income in large part determine how much you’ll be able to borrow. Credit-worthy borrowers with credit above 750 will likely get much better loan terms with higher borrowing limits than less-qualified borrowers.
Will I still qualify for a personal loan if I only have income from 1099 work?
It’s a well-known fact that lenders prefer to see W2s when qualifying borrowers because it’s verifiable income. Creditworthy freelance and gig workers often face an arduous task when trying to qualify for loans of any kind due to their employment status. Know your credit score, and debt-to-income ratio, and shop around to find the best loan offers.
