What are the different ways you can keep your renovation project to budget?
Build a buffer into your budget
Steve Jovcevski, property expert at financial comparison site Mozo.com.au says to avoid breaking the bank, build a 10 per cent emergency fund into your budget to cover off unexpected costs like mould or asbestos removal. Similarly, unexpected delays such as poor weather or a holdup in materials arriving could also lead to overspending if you haven’t set anything aside beforehand.
Stick to the Plan
Make a plan, and stick to it. One of the biggest reasons renovation budgets go all over the place is because people keep on adding things to their original plans. For instance, if the floor plan is to renovate the kitchen and bathroom only, then renovate the kitchen and bathroom only. Don’t go all berserk once work starts and don’t let things get out of hand. Stay focused. Go in with an iron gut and come out happy and right on budget.
Set up your system
Make sure you are set up to succeed, whether it is a Google Drive document, an Excel spreadsheet, a renovation tracker app or an old-school folder, paper and pen. This means getting access to the statistics quickly and conveniently, and setting aside time to review and update the information.
Keep a spreadsheet of your invoices and receipts posted. This will encourage you to remain in charge of your outgoing expenditures and you will be less likely to be tempted to splurge on anything you don't need. You're much less likely to blow up your construction budget if you can see all of your costs right in front of you.
Materials and Supplies – Double check before ordering and check quality
A renovation project entails getting materials and supplies and usually, the materials and supplies cost even more than the labor. It’s necessary to ensure that money is being spent on the right stuff. If it is not, then the money and supplies will both go to waste and cost you a lot. Double check before ordering. Make sure that the materials being ordered are exactly what are needed and are of good quality.
Try not to Move your Plumbing and Electrics
We had a quick chat with Bessie Hassan, the Money and Property Expert for finder.com.au - Australia's most visited comparison site and she believes if you want to stick to budget and save on interest costs you should try to keep your plumbing and electrics in the same location as it can be highly expensive to move these around for a renovation.
Plan for the worst
It's so important to do a great property inspection. If you don't carry out rigorous checks to detect stuff like asbestos and incorrect plumbing in any of the renovation plans for improvements, there's no chance for any kind of profit for you.
But remember, no matter how successful an inspection you conduct, do expect some surprises and prepare for them.
Housing and pest inspections, based on the reports you apply for and the location of the house, will cost anywhere from $150 to $500. But unless you are extremely qualified and work closely with your builder in this area and can do the inspection yourself, it is an investment worth making.
Don't go through any renovation project assuming that you need to tear out everything. Too many individuals are so quick to pull things apart that it's almost like they suffer from demolition fever.
Knowing what can be preserved and stay is one of the first moves when putting together a renovation plan. Obviously, it's a fine line-you need to make sure you're not nostalgic to go too far for the renovation related expenditures. But if the new look fits for the original bathroom floor tiles, why remove them?
Here are some questions you can ask yourself if you are considering a demolition:
Can you refresh items with professional paint if your bathroom tiles and bathtub are a little old but still in decent condition?
What else would you update with a fresh coat of paint on the property?
Can the kitchen cabinetry be upgraded with new handles?
Can you maintain the same layout of the kitchen, bathroom and/or laundry so that you don't have to pay the cost of moving pipes and electricity (which can be expensive)?
Research Prices and get Multiple Quotes
Researching renovation costs doesn’t just mean sourcing three different quotes from tradesmen, but it also means jumping online and finding out what you should be paying on average for materials, such as flooring or fittings.
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