Renovating is an appealing and popular option for many Australians. It's a great way to add value to your home, refresh a dated property and to gain more space without the cost and hassle of moving from a location that is ideal. Unfortunately, a large percentage of renovators end up spending considerably more on their renovation project than they initially budgeted for.
Renovations are already quite stressful and disruptive, and a budget that is soaring out of control can add even more unnecessary stress. Here are two ways that you can keep your spending in check and reduce the worry of financial stress.
1. Don't rush the planning stages
Proper planning is vital for a structurally and aesthetically successful renovation project. It's also vital if you want your project to be completed without accruing a fortune in unforeseen and unaffordable extra expenses. Taking some extra time to get the plans right means that your project is far less likely to go over budget.
Presenting your contractor with a comprehensive and well-considered plan means that you won't be paying them to twiddle their thumbs while you make important decisions as you go. It also helps to avoid mid-project changes to things like layout, wiring and plumbing, which will add extra labour and material costs to the budget.
2. Have an allocated contingency fund
Many renovation projects run perfectly smoothly from start to finish, but this isn't always the case. As the project progresses, unexpected expenses can arise that weren't included in the original budget. Things such as discovering asbestos, plumbing issues, structural concerns and poor weather can all rapidly eat up money that was meant to be spent on other things.
Setting aside an amount to use as a contingency fund in these situations is a way to safeguard your overall spending. There is no set amount or percentage that a contingency fund should be. The amount depends on the size of the project and the condition of your property. Generally speaking, the older the home is, the more likely you are to experience unexpected costs.
If you're unsure about how much you should set aside for your contingency fund, it's well worth discussing the issue with your home renovation contractor. Although it's impossible for them to give you an exact figure, they can use their previous experience to help you gain a better idea about the potential pitfalls and common issues that they have come across on previous projects.
Hi! My name is Robert. I live in Brisbane with my wife and our two kids. For many years, I have been saving up money so I could build our dream home. I first saw my dream home when I was aged 21. I was on a holiday to the USA and was staying with friends in California. While down on the beach one day, I spotted a lovely mansion house which was high up on the cliffs. I decided that one day, I would like a house like that. Last year, I instructed a team on house builders to begin construction of our new home and I couldn't be happier. I have learnt so much from the experience, I decided to start this blog.