How not to blow the budget during your home renovation
Home renovations can be rewarding both in the improvements you make to your living spaces, and the value you add to your house. The key to a successful renovation is making sure you stay on budget. Here are a few of our top tips on avoiding budget blowout during a home reno.
Beware of the kitchen & bathroom
Bathrooms and kitchens are typically two areas where you can easily spend the most money. A bathroom can cost around $10,000 to renovate, and a kitchen can cost anywhere from $10,000 to $20,000.
To ensure you stay on budget, don’t get caught up on the little things. Fancy taps, showerheads, cupboard handles and fancy tiling can all add to your overall costs extremely quickly. This is where you need to ensure you stick within your budget and avoid spending too much as the cost of improvements may end up out weighing the value added to your home leading to over capitalisation.
Don’t set your budget too low
When you’re initially considering making home improvements, you’ll need to estimate the costs. These will largely consist of the cost of materials, and of the time it will take for a contractor to make the changes. Make sure you allow some extra funds in your budget to allow for any unforeseen expenses.
Start by setting a realistic budget using a budget planning tool that will help you find a figure that’s as close to accurate as possible. There are a few options you may like to use when planning your budget for a reno including using your savings, applying for a personal loan or potentially considering what redraw or equity is in your home.
Don’t DIY unless you know how to DIY
As a country of DIYers, many of us like to think doing a few jobs around the house aren’t too much of a task and it’s something we have all been guilty of at some point! It’s one thing to attach a new door, but something completely else to rework the plumbing or install a rangehood.
Attempting a DIY job, then calling in the experts to fix it, and potentially paying them extra to undo your work before they can start, will cost more than if you’d have just hired them in the first place.
If in doubt, call the experts in and get it done right the first time!