When it comes to renovation, there are many reasons why they fail, but the main one is because of budget. When it hasn’t been done correctly, time and money can be significantly affected, to the point of devastation.
The majority of success in any part of life relies on the ability to plan well from the very start. Below are some tips to help people keep a renovation budget on track.
Breaking it Down
Whether you are renovating a home to live in, for-profit or even it is somewhat a hobby, underestimating the costs involved are commonplace. If for whatever reason your budget gets off track, you won’t be able to have those pieces that you want to make your renovation complete.
When you start planning, it is best to break down the budget into smaller details, this will make it easier to keep track and your less likely to overspend when work begins. It also gives you a clear vision for what you can actually achieve.
Often overlooked, you need to ensure you factor in costs for stamp duty, insurance, purchase price and expenses for property improvements. There are also hidden costs that may occur, such as demolition and site clean-up, so be sure to factor in those.
Expenses for clean-up can be quite expensive, but you can minimise these by giving away or selling as much construction material as possible. By doing donating items, you can alleviate some of your costs.
Planning for Worst Case Scenario
Doing a property inspection that is thoroughly done using a checklist should be high on the list of things to do. Carrying out these types of assessments is where things are discovered that might otherwise be overlooked, such as asbestos, faulty plumbing or mould. Not catching these issues at the right time can become very costly.
In respect to this, surprises should always be expected no matter how thorough your inspection is. Further, building and pest inspections should be undertaken. These inspections usually cost around $150 and $500, although this depends on the type of report you are choosing to have done. It is recommended that you always use a professional to do these inspections because they need a high level of expertise to be done accurately.
Don’t Rip Everything Out
It is so easy to get demo happy thinking everything needs to be ripped out when you renovate. It seems easier to gut everything out and let demolition fever take hold. However, we recommend when going through the first steps of putting together a plan for a renovation that you see what is intact and can remain. You need to be able to separate yourself from sentiments and taking the costs of restorations too far, as those expenses can soon add up. However, if the cupboards or flooring work well for the new design, then why change it up when you can save time and money.
Ask yourself the following when making your plans:
- Can you keep wet area layouts, so you don’t need to move costly electrics or pipes?
- Does the backyard need redoing completely, or can you install cost-effective synthetic lawn?
- Can you refresh your bathroom tiles and bathtub with specialist paint?
- What else can be updated with a fresh coat of paint rather than totally changing?
- Can you add new kitchen cabinet handles to refresh the space or do they need updating completely?
Your answers to these questions will readily determine how much you spend on your renovation and get you to consider changes to your plans that you can make.
Have a Buffer in the Budget
The reason we suggest having a buffer in the budget is that you never know what is hiding behind the walls of your renovation, even with extensive building checks. Having a little extra in the store that can go towards any surprises, is not only smart but ensures you can keep going with the job at hand.
Like anything in life, sometimes things happen beyond our control, but unfortunately, you can’t just turn a blind eye. Even though they weren’t considered in your initial budget, they still need to be dealt with in the best way possible. Often you won’t just have that type of extra money hanging around or be able to take those dollars from another space without further affecting the entire renovation outcome.
This is where the buffer in your budget is ideal because it means you can tap into this account rather than taking it from other areas. We recommend setting aside at least 15% of your total budget for any unwelcome costs.
We hope that our tips and ideas can help you make the most out of the renovation budget you have planned.