Are you halfway through your renovations only to realize, to your shock and horror, that you lack the funds to adequately complete them? Or maybe you’re hoping to renovate to devise a plan so you might avoid such a disaster when it comes time to renovate your home?
In either instance, you’ve come to the right place.
Too often homeowners and renovators fail to effectively prepare a budget or to design a course of action for their home designs and renovations, which can have a crippling effect later on down the line.
In this article, we give you the lowdown on how to prepare a budget so you can keep your renovation project on track and have your new house finalized on time.
Plan out your expenses
And we mean it, every expense. Begin a spreadsheet and enter into it a wish-list of all the materials you will need to purchase and services you’ll need to employ if your renovations are to come to life. Plan out the minutiae of your renovations, down to the smallest imaginable details such as property insurance, door knobs, demolition and site clean. Now, list the subtotal next to each item.
Once you add all the subtotals together, you will have a realistic idea about how much the total price of your renovations will cost, thereby determining whether your housing renovation goals are plausible and should be a go-ahead or not.
Should you choose to move ahead with your renovations, this planning process will definitely benefit you in the long run. By using a spreadsheet to calculate a running total on the overall cost of your project, you will be able to decide whether or not you should move ahead with your renovations, as well as make adjustments to it as you move forward, keeping your finances in check and making sure you don’t leave your house half-revamped.
Underestimate and over-budget. Every time.
If this is your first sojourn into renovation territory, you will soon find the value in deliberately over budgeting.
This is because, like a jack-in-the-box, you will soon find hidden costs you need to cover popping up out of nowhere. From asbestos to incorrect plumbing to dodgy wiring, your house may be riddled with faults that require specialist treatment.
This means you will need to fork out money on expenses you hadn’t previously foreseen therefore leading to a blowout in your budget. This makes it imperative that you create a financial buffer to counter unexpected and unwelcome costs.
Whether they’re burst pipes or collapsed beams, you will have a financial buffer to help mitigate those nasty price-tags that seem to spring up seemingly out of nowhere. Should you over budget, you are one step closer to premeditating and solving this problem before it even arises.
Hire an expert
You might feel like taking on a gung-ho, DIY approach to your renovations, but have you ever considered hiring an expert?
Specialists do exactly what they’re paid to do. They specialize. Whether it’s flooring, roofing, walling, wiring, plumbing or designing, they have trained in their field so they can become qualified and provide the best possible services to their customers and clients as they’re needed.
Although it might cost more in the short-term, hiring an expert for expert advice or services is worthwhile as a shoddy job completed now might cost you more later. Where you can and you’re otherwise unqualified, hire an expert to do the job for you. Right. The first time.
Be thrifty with your cash
We mentioned earlier that it’s highly important to plan a budget for your renovations and to stick to that budget where possible (unless hidden costs arise).
Well, one way to save money is to be thrifty with your cash flow. Where you can, try and locate stock that is going at a discounted price (so long as it suits the stylistic and structural needs you have for your home). This will minimize your cash output so that you save more in the long run, thereby strengthening your financial buffer, or creating future savings for yourself.
An example of being thrifty with your money is investing in the most cost-effective flooring products that are best suited to your home.
Rather than purchasing exorbitantly priced natural stone floors, such as marble or slate, you might opt for beautiful hardwood floors such as those featured in the Australian Select Timbers range, or for laminate products such as the Quick-Step Impressive Ultra range, which offer an authentic hardwood performance and appearance without the actual wood.
If you are clever with your cash and invest in products that are cost-effective you can maximize your renovations while you minimize the cost of those renovations. Be thrifty. Always.