Got a renovation on the cards for 2021? We all know that renovation costs and overheads can get very pricey, very quickly. It also is extremely hard to know what you should splurge on, and what you should save… To avoid going over budget, we have put together some tips on planning and budgeting that will take the stress out of your renovation financials.
HAVE AN INITIAL FIGURE
Setting your budget should not only include what you can afford to spend, but should also factor in what is going to make sense in terms of return. Assess if your renovation is based on lifestyle, or whether you are renovating for profit. If you’re renovating to sell, your budget is going to be smaller than if you’re planning to live there for a while. However, even if you do plan on living in your home for a while post-renovation, it is still important to do some research regarding resale value. As a rule of thumb, you should also set aside a buffer of at least 10% in case of emergencies.
TICK OFF THE BIG THINGS FIRST
Start your budget by costing out the major features or products that need replacing or work, such as flooring, windows, tiling, and big-ticket appliances. Some places things to splurge on are things that require a higher quality or are used daily, such as flooring.
DON’T FORGET THE DETAILS
Tapware, mirrors, door handles, light switches – these smaller, less obvious items add up over the long run. Assess the room from top to bottom and write down a list of everything you will need to buy so you can factor it in your budget.
Pricing products may be at the forefront of your mind, however, it is so important not to forget labour costs! Labour can be a significant portion of your total cost. The cost of labour and contractors varies between the project and the size of the space, so it’s difficult to set a standardised cost. SHOP AROUND! Get quotes from various companies, ask friends and family for suggestions and recommendations.
Do you need to factor in new furniture to suit the renovations? Furnishings are the fun part, but they can often be forgotten when plotting out the budget for a renovation. Don’t let this be the area where your costs blow out. You may think you’re happy with your current furniture, but it’s not unusual that after a renovation you’ll find the old stuff simply doesn’t go with the new space.
OTHER THINGS TO FACTOR IN
- Timeline: In terms of the actual building time it will vary depending on the scope of works and the rooms being worked on, so try and break it down room-by-room.
- Keep track of everything: Contacts, dates, costs, receipt, and paperwork. Keeping everything in an orderly manner will help you stay on top of the project and plan accordingly for any major changes if delays or mishaps occur.
- Don’t rush it: Review all contracts line-by-line before signing, also consult your budget before committing to any expenditure.
- Permits: Most property extensions and larger renovation projects will need to be signed off by the local authorities. This means you will likely require a development application or assessment.
We hope this helps you plan your next reno! For more information on planning a renovation, visit: https://www.realestate.com.au/lifestyle/renovation-planning-guide