5 HOME RENOVATION BUDGET TIPS

 One of the most important aspects of a successful renovation is being able to design and stick to a budget. A home renovation budget is essential for a successful renovation. Nearly a third of renovators worry and stress about the budget and find it difficult to stay within their home renovation budget. But it is never too late to improve your financial situation and work towards building long-term wealth.

So here are 5 tips to help you get off to a good start.

Do your research.

The first step when setting your budget is deciding exactly what you want to achieve.

You should have a clear idea of what you want before you start getting quotes and choosing materials. Creating a detailed plan is essential to the success of your renovation project. In order to be able to stick to a renovation budget, it is important to ensure you are realistic. You’ll need to do research into the cost of materials and products, as well as the cost of labour in order to be realistic. 

Get solid quotes.

Research is an important part of estimating your budget – but don’t guess! Work with trade professionals who will provide you with a written quote because this will give you a solid cost for all aspects of your renovation.

When sourcing quotes make sure you get at least three quotes from different contractors before making a final decision. This is so you can compare them and make sure you’re getting a good deal.

Of course, high quality materials cost more and skilled contractors often charge more than less experienced ones, so check the contractor’s reputation, ask plenty of questions and look for hidden fees.

Check all the costs involved

Apart from the standard cost of contractors and materials, there are some other fees you should be aware of. If your renovation requires council approval, you will need to allow for certification fees. 

Remember to budget for ALL purchasing and selling costs (legals / bank fees / real estate agents fees etc) 

For larger renovation projects, you will need to factor in some specialist costs, particularly if you have to excavate, demolish or level the land before building can start. If the job will take a significant amount of time, temporary fencing and portable toilets might need to be added to your expenses. Depending on your priorities and the complexity of the renovation, you can also encounter unexpected costs when rewiring electricals and insulating your new structure.

Have a system to track your costs

Keep an updated spreadsheet of your invoices and receipts. This will help you stay in control of your outgoing costs.  You will be less likely to be tempted into splurging on something that you don’t need. 

Whether it’s a Google Drive document, Excel spreadsheet, renovation tracker app or paper and pen, make sure you’re set up to succeed. This means having instant and easy access to the figures, and setting aside time to check and update the details on your budget every day. Allocate about three hours every week to review the whole budget, check invoices against quotes and pay the bills.

Stick to the plan

Once you have started your renovation stick to what you originally agreed upon. Changing the plan often leads to delays, money being spent on extra materials and extra labour time. Deviating from your plan more often than not causes significant impacts to your budget, so it’s important to know where to draw the line during changes to your renovation. Having said this, please consider setting aside 10 percent of your overall budget for contingencies.