How to complete your renovation within budget
I have seen many people fail in their renovation attempt simply because they run out of time and money.
What most people don't realize is that much of their success depends on their ability to plan well in the beginning.
Here are some tips on how to keep track of your budget during your renovation.
Break It Down
Whether you're doing a major renovation or a simple upgrading to your home for a profit, it's all too easy to underestimate the costs involved.
If your budget is exhausted, you will not be able to afford so many critical finishing touches for the final product.
Break down your budget in detail during the planning phase – this way it's less likely to blow during construction.
It will also allow you to be realistic about what you can and cannot achieve. And don't forget about hidden renovation costs like demolition and site clean-up.
Plan for the Worst
Before you start, you need to carry out a thorough inspection of the property. Pre-repair inspections reveal asbestos and improper plumbing, allowing you to adjust your budget.
However, remember to always expect surprises when planning, no matter how successful your review is. Don't be content with just what your pre renovation inspection report says.
Don’t Get Demo-Happy
Don't start any refurbishment thinking you need to get rid of everything. Too often, people are so enthusiastic about tearing things that they appear to be suffering from demolition fever.
One of the first steps in developing a refurbishment plan is to see what has been intact and what can be left as is.
Of course, this is a fine line-you need to make sure you aren't overly sentimental and at the same time you don't want to blowout the costs associated with renovation.
For example, if existing bathroom floor tiles work with a new look, why remove them? New tiles and time required for replacement cost money.
Here are some questions to ask yourself:
Can you keep the same kitchen, bathroom or laundry layout so you don’t have to go to the expense of moving pipes and electrics (which can be costly)?
What can you update with a fresh coat of paint?
Can you update kitchen cabinetry with new handles?
Can you rejuvenate existing wood floors?
Check your Home Loan Savings
Keep Back-up Funds
You don’t know exactly what’s behind the walls in the projects you take on (and even with extensive property inspections).
Thus, a buffer is essential in your budget, no matter how experienced you are. Sometimes things happen that you cannot control.
You cannot choose to simply ignore them just because they are not written in your original budget. And you potentially can't get a couple thousand dollars from another section of your budget to fix unforeseen issues as it will leave another part of the renovation short on funds.
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This article does not constitute advice; readers should seek independent and personalised counsel from an appropriate trusted adviser that specialises in property, a tax accountant and property or interior design specialist.