If you have ever renovated a property before, you will know that staying on budget can be a difficult task. You may be on track with all of your expenses, but then an unexpected surprise comes up at the worst possible time and completely blows your budget out of the water.
So what can you do to keep your renovation budget on time and on budget?
Have a Plan B
Unexpected costs can have a detrimental effect on your renovation project. That is why it is important to plan ahead and create an emergency fund. This extra money can help cover any costs you hadn’t prepared for.
It is also a good idea to work out a plan B for any deadlines. If you have a definite deadline you cannot go past, it may be advisable to set an earlier deadline with any tradies for a few weeks beforehand in case there are any delays.
Shopping around should apply to both supplies and hiring help. When you are looking to hire a professional, such as a tradie or contractor, speak to a few different companies and obtain quotes so you can compare prices. Also find out what their policies are on sticking to a budget and timeline. You may also find that the tradie/contractor can get supplies at a wholesale price.
What can you do?
Although some jobs should be left to the professionals, there are certain jobs you can try out. Jobs such as constructing flat packs, painting and pulling up old flooring and carpet are not too dangerous and can help you save money on labour costs.
Plumbing and electrical jobs can be quite dangerous and very expensive to fix if you damage any of the fittings. It is best to get a qualified professional to do these types of jobs.
Keep a record
Your money supply can dry up very quickly if you are not keeping track of your expenses. It is best to have one book/folder/box where you can keep all of your invoices and receipts. Regularly checking over your expenses will help you keep your budget on track and will also give you a chance to adjust your plans if you do over spend in certain areas.
Focus on certain rooms
If you are renovating with the intention to sell the property for a profit, you may need to prioritise which rooms you want to renovate. Upgrading a property as a whole can be an expensive and time-consuming project. If your goal is to improve the property’s price tag for a minimum cost, you may want to focus on a few key areas in the home. Many renovators choose to upgrade the kitchen and bathroom as they are two of the most used rooms.
However, you need to remember that if you only renovate one or two rooms, they shouldn’t stick out like a sore thumb. If the kitchen and bathroom have a completely different feel with different colours, it may not improve the property’s value as the design is not cohesive.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Anouska Linz is Manager, Online Sales at State Custodians and has over 10 years’ experience in financial services, both in broking and banking. Holding a bachelors degree in accounting, Anouska quickly discovered a love for mortgage lending and assisting people to achieve their home ownership goals. She leads a team of highly experienced lending specialists who are passionate about finding lending solutions which result in real wins for the customer. She is also a massive netball fan.
For more information on our home loans, visit www.statecustodians.com.au or call 13 72 62.