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Fencing Financing

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by | Mar 31, 2021

Fencing Financing

Why install a new fence?

 Fencing will be your number one source of privacy in your yard. If you like to keep things private at your home then a tall, wood fence is a great option for you. Maybe you need front yard fencing so your children or animals can play outside with minimal worry. Most homes will need some type of fencing.

 

How much does a new fence cost?

On average, fencing costs $5 – $25 per square foot. Homeowners typically pay $1,500 to $3,000 for a new fence installation. Fencing prices are dependent on the material and size of the fence. There are many fencing styles and materials to consider before committing to a new fence.

 

Types of Fencing

 

Materials & Type

Average Price Per Square Foot

Wire

$1 – $7

Bamboo

$6 – $12

Post & Rail

$6 – $16

Chain Link

$9 – $30

Wood Picket

$10 – $14

Panel

$11 – $13

Pool Fence

$12 – $16

Shadowbox

$12 – $16

Split Rail

$12 – $17

Privacy

$13 – $19

Vinyl

$15 – $30

Board on Board

$16 – $22

Wood

$17 – $22

Composite

$23 – $37

Aluminum

$24 – $32

Other Metal

$24 – $32

Wrought Iron

$24 – $44

 

These prices are averages and will vary depending on location and other factors.

 

Fencing By the Acre

If you live on or own a large property, it might be more pertinent for you to pay for fencing by the acre, rather than by square foot. The more acreage you have, the less you will pay per acre. However, if the acre is not square or it has slopes, then the price will be slightly higher.

 

Reasons for a New Fence

 

Security

Feeling secure in your home is vital. Making sure you have the correct fencing for the amount of security you want in your home is very important.

 

Safety

Front and backyard fencing can be good options for families with animals or small children. Keeping your kids or animals safe from running into the street is easy with a fence surrounding the yard.

 

Style

A fence is a way to know where your landscaping should stop in your backyard. A fence in your front yard can be an eye-catching addition to a plush lawn or garden.

 

Privacy

One of the top reasons for a backyard fence is privacy. Fences can also block sound so it serves as a double privacy barrier between you and your neighbors.

 

Increase Home Resale Value

Everyone values privacy and security. Having a fence that provides both will look good to prospective buyers. Having both of those things while also being aesthetically pleasing is a definite way to increase the resale value of your home.

 

Other Factors to Consider:

 

Material

 

Metal and Chain-Link

Metal and chain-link fencing are excellent options if your main area of concern is security. These options keep strangers out and keep pets and children in. The only downside to this material is that rusting is possible.

 

Wood

Wood is one of the pricier materials you can choose for your fence. Wood is also one of the most popular options for a backyard fence. A six foot tall wood fence is one of the best options for privacy. If properly maintained, a wood fence can last upwards of 20 years.

 

Vinyl

Vinyl fencing is slightly less expensive than wood fencing and can be a look-alike if you want. Vinyl can last even longer than a wood fence and requires very little maintenance. Vinyl is a good mid-range cost option with only one downside. Vinyl is one of the least secure options for fencing. Vinyl offers a lot of privacy and is eco-friendly.

 

Composite

Composite is another pricier option but not quite as expensive as wood. Composite lasts about as long as wood but requires little to no maintenance. Composite can mimic the look of wood or be a solid color.

 

Wire

Wire fencing is typically the least expensive fencing material. Hog wire was initially designed to contain hogs in pens but has recently become a trend for homes. For a modern look, you can attach the hog wire to a wood panel and wood fence posts. Hog wire fencing does not provide a lot of privacy but is a fairly secure option.

 

Woven wire fencing is another good wire fencing option, especially for a large property with multiple animals. Woven wire can be very secure and a happy medium between hog wire and barbed wire.

 

Barbed wire fencing is most beneficial for large properties with large animals. Barbed wire fencing is good for containing your animals and keeping unwanted animals out.

 

Mesh and chicken wire fencing is the least secure option out of the wire fencing family. Mesh and chicken wire is best suited for small animals in a small space.

 

Aluminum

Aluminum fencing is a good option for a front yard or pool. Aluminum can mimic the look of wrought iron while typically being less expensive. Aluminum fencing can come in both picket and private styles.

 

Wrought Iron

Wrought iron is the most expensive material used for fencing. Wrought iron provides an attractive look while also being a very sturdy and secure option. Wrought iron can last up to a century with little maintenance.

 

Style

 

Privacy

The most cost effective material option for a privacy fence is wood, but you can also get a privacy fence made of wood or vinyl. Privacy fencing is typically built to be at least six feet tall to ensure maximum privacy around your yard. Privacy fencing is very popular for single-family homes, typically surrounding the side and back yards.

 

Picket

A white picket fence is truly the epitome of an American single-family home. A picket fence can come in many materials and colors. A wood picket fence is an easier DIY project compared to privacy fencing. A picket fence is a good option for your front yard and will help keep children and animals from roaming. Picket fencing can also surround your backyard but it is not a great option for privacy.

 

Split Rail

Split rail fencing is typically used on larger properties. Split rail fencing is a very attractive fencing option. However, split rail fencing does not provide much privacy or security.

 

Board on Board

A board on board fence is typically made of wood but it can also be made with vinyl or composite materials. Board on board fences are good options for side or back yards because they look the same on both sides. The one downside to a board on board fence is that sometimes it is not entirely private. However, this can be remedied by making sure the panels are connected to one another.

 

Security

Security fencing is typically made from a metal material and can be one of the more costly fence styles. However, the price is worth it for the purpose of the fence. The main purpose of a security fence is to keep people out, but it can also be used to keep children and animals in. Security fencing is typically built to be at least 8 feet tall and topped with pickets. Security fencing can also be topped with barbed wire or electric fencing.

 

Durability

A fence that lasts for a long time with minimal upkeep will be the best option if you are thinking of putting your home on the market in the near future. A fence than weather tough weather conditions will also be appreciated in most climates.

Best Fencing Financing Options

1. Personal Loan

A personal loan can be a good option when you are not liquid enough to pay for a project in cash or do not yet have enough equity in your home to leverage for a new fence. A personal loan is a type of installment loan. This type of loan is typically paid back in 12-84 months so it can offer a lot of flexibility. A personal loan can be a good option for someone with good credit or a good relationship with their bank or credit union. This type of loan does not require that you put anything up as collateral so you do not need to worry about a lien on your home as long as you make your payments. Interest rates for personal loans can be lower than those for credit cards or other types of loans. Interest rates for personal loans can range from 5 to 32 percent depending on credit and loan length, while credit card interest typically averages 18 percent. Generally, the better credit you have the lower the interest rate will be. One thing to keep in mind with personal loans is that the better your credit, the lower your interest rates will be.

Prepayment penalties: Some lenders don’t charge prepayment penalties, meaning you can pay off your loan early and decrease the amount you pay in interest.

2. Home Equity Loan

A home equity loan can be considered a second mortgage. A home equity loan allows you to borrow a lump sum of money using the equity you have built in your home. A typical repayment for a home equity loan is between 5 and 30 years.

You can calculate your home’s “loan to value” ratio by dividing the amount you owe by the value of your home. For example, you owe $150,000 on a home worth $300,000. That’s $150,00/$300,000 = 0.5 or 50 percent loan to value. This means that you have 50% equity in your home. After calculating your home equity, compare it to your lender’s maximum LTV ratio to see if you qualify for a home equity loan. After confirming that you may qualify for a home equity loan you can calculate how much you may borrow by multiplying the value of your home by the maximum LTV of the lender and subtracting your mortgage balance.

 

Pros & Cons

Home equity loans are great for people who want to fund home improvement projects because the interest you pay will be tax deductible if the money is used for renovations, according to BankRate.

Home equity loans offer competitive interest rates when compared to other options.

Pros

Cons

Low interest rates

Closing costs can be expensive

 

Fixed monthly payments

For those who want to pay it off fast, they have longer funding timeline than personal loans

Interest may be tax deductible

Risk of losing your home if you are unable to make payments

 

Home Equity Loan vs. Home Equity Line of Credit (HELOC)

Both home equity loans and HELOCs are secured against the value of your home equity. However, a home equity loan is a lump sum of money and a HELOC is a revolving line of credit, similar to a credit card.

A HELOC may be harder to secure than a personal loan or home equity loan therefore you need good credit and a high LTV ratio.

3. Credit Cards

Credit cards are always an option for financing home improvement projects. However, credit cards are likely to be the most costly option when financing your new fence. Moreover, the interest rates will likely be higher with credit cards, making them harder to pay off over time. Credit cards can be obtained regardless of credit issues and therefore can be the most flexible option for a broader range of credit histories.

 

Would new fencing increase the value of your home?

Fencing is always in demand. There is rarely a family who would not appreciate the safety, security, and privacy that a fence offers. A sturdy fencing is a great selling point for prospective buyers. 

Average ROI for a New Fence

The average ROI for a new fence is around 60%. Therefore, if you invest $3,000 for a new fence, you should be able to recoup $1,800 at resale.

 

Conclusion

A fence is such an easy way to add safety and security to your home. It can also add a nice stylized look to your yard. Prospective buyers will always appreciate a well constructed fence. Overall, there is no down side to a new fence.

 

 

References

https://homeguide.com/costs/fencing-prices#security

https://www.northlandfence.com/reasons-to-install-a-fence/

https://rehabfinancial.com/blog/house-flippers-guide-to-choosing-the-right-fence

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Good fences make good neighbors and great fencing financing options make them even better!