Anyone who has undertaken a home renovation in the past will know that it is no light feat. There are a lot of factors to consider before the building work even begins. The most important being the renovation budget.
Sticking to a renovation budget is tough in most scenarios. But with a home renovation, it is more pertinent than ever to diligently plan ahead. This is to ensure there is a buffer for any alterations, delays, and roadblocks that you might hit along the way. And, more importantly, that you get the best from your plans and create your dream home. If you need guidance on how to best budget for your home renovation, we have some tips.
How To Stick To A Renovation Budget
State your budget up-front and don’t be unrealistic
The key to a successful home renovation is being realistic with money. Depending on the size of the build, the renovation budget could be tens of thousands. Often it’s a family’s whole life savings.
Don’t be precious about numbers. You should come up with a solid figure from the outset and share it with your architect and builders so that they can work within its parameters. They can also guide you on what your budget can allow for. They will give you alternative options if required.
It’s not a bad idea to set a budget for a home renovation for far in the future. In general, building projects always cost more than you may predict. So if you find you don’t have the money to create your dream home just yet, setting a budget will give you something to aim for in the years to come.
Don’t do everything all at once
For many homeowners, achieving the perfect house is a marathon, not a sprint. It is wise to not try and tackle every part of your home at once. Instead, think of it as a journey.
You may decide to save up to get a kitchen renovated one year. Then a couple years later you may decide to spruce up the living room. It is financially feasible to take your time, and incredibly motivating, too. This will make it easier to stick with a home renovation budget also.
Outline what you want from your home renovation
Once you have a renovation budget set in stone, you can get serious about planning the work you want to be done.
Say you want to add another bedroom to your home, your renovation budget will determine the size and the means. For example, your budget may only allow you to knock through an existing wall, instead of adding an extension onto the side of your home.
In terms of which type of home renovation is most costly, refer to these guidelines.
The average home renovation costs in Australia:
- Kitchen: between $15,000 and $60,000
- Bathroom: between $10,000 and $30,000
- Living Room: between $10,000 and $20,000
- Bedroom: between $20,000 and $25,000
Kitchen renovations are by far the most expensive. This is due to all the plumbing and electrical complexities, as well as the appliances and fixtures required. If you are considering a kitchen renovation, plan carefully. A good quality kitchen can last decades.
Get expert opinion
Enlist the expert advice of consultants when renovating your home. They can guide on you through the process, from renovation budget to build. They can even advise you on fees that you may have forgotten about: council fees, auditors, surveyors, planning permits, etc.
Don’t skimp on professional help. You should always hire top-quality, licensed contractors to complete your work for you. Factor this into your renovation budget, and you’ll be onto a winner.
Don’t forget to factor in the additionals
Most of your budget should be reserved for the big picture – the build. However, you shouldn’t disregard the cost of additionals, such as furnishings.
When setting a renovation budget, it is wise to think ahead to the end of your project. Think about the items you will need once the main building work is done: new furniture, furnishings, lighting, appliances, curtains, and blinds, etc.
You should also consider the cost of hiring an industrial floor cleaner, such as ASC’s floor scrubber. This is to ensure all the building debris is cleared so that you can move your family quickly and safely back into your home once the work is done.
Prepare for unexpected surprises
There are always surprises in a home renovation project. Sometimes the materials aren’t right, or working conditions prove difficult. There may even be a delay in service that is out of your control. This can set you back financially (especially if you must arrange alternative living arrangements during the project).
It’s impossible to predict what may happen during a renovation. If you prepare for curveballs and roadblocks and factor them into your renovation budget, you won’t be so sorely hit. This means adding around 15-20% on top of your estimate as a buffer.
Spending your family’s entire life savings on a home renovation is scary, to say the least. But a well-planned home renovation can increase your home’s value by up 50%. If you’re willing to put in the money at the beginning, you’ll spend less later down the line. You’ll get more out of the job. So long as you are prepared, have a strong plan, and have the support of reputable contractors, it’ll be a smooth ride. Then you only have to stick to the renovation budget you set.