If you’ve even done your own renovation project or seen the renovating shows on TV, you will know that sticking to a budget can often be difficult.
There are usually unexpected surprises that pop up at the worst moment and end up costing a lot of extra time and money to fix.
So how can you successfully complete your renovation on time and on budget?
Prepare for the worst
Renovations don’t always go as planned, so it is important to plan ahead for any unexpected costs by setting up an emergency fund. You should also think about your estimated time line for completing this project. If you have a deadline that is set in concrete and you cannot go one day over it, then it may be advisable to organise an earlier deadline for any tradies or other professionals that you hire.
This will give you a safety buffer in case any issues come up and the renovation project has to be delayed.
Shop around and compare
Purchasing supplies and hiring help should not be done with doing your research first. When it comes to choosing a tradie, obtain quotes from a few different companies and also speak with them personally about their policies on sticking to a budget and timeline. If you are planning to hire a tradie, you may find that they can also get certain supplies at a wholesale price and is a lot cheaper than what is sold in stores.
You can save a lot of money by doing certain jobs yourself, such as painting, putting together flat packs and ripping up carpet. However, there are some projects that can be dangerous and should be left to the professionals. Jobs that involve moving plumbing and electrical fixtures can be quite expensive, so it is best to leave them where they are if possible.
Keep a record of purchases
If you are not keeping track of how much you are spending, you may reach the end of your budget a lot quicker than you expected. Keep a book of invoices and receipts so you have record of your expenses. By regularly checking your expenses, you can not only make sure that you are on track with your budget; you can also make any necessary changes to ensure you don’t overspend. Ignorance is not bliss when it comes to renovating.
Prioritise certain areas
This tip is specifically for those who are renovating for profit. Renovating an entire house can become extremely expensive; however, it is still possible to improve the property’s value just by focusing on a few key areas. Kitchen and bathroom renovations are often a popular choice for renovators as they are two of the most used rooms in the house.
But remember, it is important to keep cohesion throughout the whole house, so if the kitchen and bathroom have a completely different style to the rest of the house, it may not improve the property’s price tag as much as you would have hoped.
One option you may wish to consider is using your home loan to fund your renovation. Some renovators refinance their home loan to access more money to finance the renovation. If you are interested in using your home loan for your next renovation, you can speak with our team. They can chat to you about what your property is currently worth, what type of renovations you are looking to undertake and home loan options that may be suitable. Give our Lending Specialists a call on 13 72 62 for a chat about funding your renovations.