If you are always covered in sawdust, or you find yourself often digging a hand into a fully stocked cooler for a cold drink, you’re probably in the midst of a renovation project.
Renovating can affect your family relationship in a negative or positive way. Going over budget in the middle of a renovation can create problems. Below are some tips to keep your renovation costs under control.
First, ask if this home will be yours permanently or if you plan to lease it after renovating. The intended use of the property will have a significant impact on your renovation strategy as well as your budget. If you’re going to live in your renovated property for a long time, you can go with any architectural design that suits your interests. However, if you intend to have the property leased, you need to consider what the potential residents would like and make your property appealing to the real estate market. In the case of the latter, your budget should be planned wisely in order to receive a large return on your investment.
If it is a rental, consider the longevity and strength of fittings and how easy the house is to look after and clean. While you may love the idea of a lighter-coloured carpet, this probably is not the best choice if you’re going to have a house of students renting from you. You may want to find durable fittings and an economical way to make the house look pleasing without spending too much. If you are thinking of attracting families to lease the property, consider designs where children are factored in. For example, parents might be looking for a house with a separate bedroom for their kids or a spare recreation room.
Having a lawn fountain or a sunroof may sound like a fun addition to your home. However, going over your budget without completing the renovation is a bad idea.
Unless you’ve renovated before, it’s an easy mistake to go over the budget. It is a good idea to research what labour and materials will cost before you start. This allows you to create a realistic budget for your renovation.
Always remember to keep a record of every single cent spent. You will need this in order to keep your budget on the right course throughout the renovation. Having a record allows you to see if there are any materials or labour expenses that cost more than you anticipated. This helps you avoid them and find a cheap alternative to keep your budget in check.
Another tip to consider is to create an allowance for your budget. The allowance is a small portion of the money you are planning to spend on the renovation, which will not be touched. This helps you cover any emergency funding for materials which can help you avoid going over budget. A good rule of thumb is to have about 10 to 20 per cent allowance to your budget.
It pays to shop around – even if you are only saving $50 out of a $1,000 job, it all adds up. Make sure you take the time to have a number of quotes prepared for you. It also doesn’t hurt to let home builders know you’re after the best price, and you’ll be considering a number of options.
Make sure you explain your strategy and vision to potential home builders. If you’re worried about over-capitalising and wanting to stick to a tight budget, let them know. Any good home builder will understand and will work with you to get the best result.
The best way to see what colours and layouts work best is to visit open houses in your area. Many houses in a particular place have a common structure and construction date, like they are all made by the same person. Once you’ve done this, you may want to visit homes more up-market from yours for style and colour ideas.
Do you really need to hire a painter, or do you just not enjoy the job? There are lots of renovation tasks people can do themselves. You can achieve this with a bit of perseverance, a dose of patience, and face protection. Grabbing a paintbrush can save you a lot of money. Sure, it’s not the way you want to spend your weekend, but it will help significantly in the long run.
It also pays to ask your home builder what you can spend as little money as possible. Are there any nails you can pull up before they come to do the sand and varnish? Other easy tasks you can do before a professional renovator comes in to do the heavy stuff include:
You can lower the time they have to work by doing some of these things yourself. These can save you money.
There is always a market for second-hand fixtures, furniture and materials. If you’re careful when pulling out items, you could save a pretty penny by selling them on eBay or another popular classified site. There are even other people who will go to your address to purchase the items from you. Be prepared to bargain and have fun raking in a little extra cash. Consider doing the opposite by looking for 2nd hand fixtures and furniture.
There are a number of options when it comes to financing your renovation project. These can include:
Each of these methods can affect your renovation plan. Remember, renovating is a big task to take. Take note of the tips above to keep the costs under control.
Author: Taryn Jacob has been a Senior Financial Advisor for over two years now. She’s a graduate of Banking and Finance at Melbourne Business School, then later moved to Brisbane. Ventured to do journalistic practice, she currently writes for Heritage Bank , specialising in home loans.