There are many different reasons why people remodel their homes at some point. For instance, it might be to make the space larger, more modern or more stylish or to upgrade it for a sale at a higher price or for rental purposes.
No matter what your reasons may be for starting some renovation work in the future, it’s important to do so in a way that doesn’t hurt your bank account balance too much or result in your overcapitalizing. Thankfully, it’s not hard to find ways to ensure your money is spent well and becomes a positive investment for your family’s financial future. Read on for some tips for a top remodel on a budget.
For starters, always set a budget before you start work, and stick to it as the renovation progresses. Many people end up in financial trouble because they get so excited about changing up their home that they over-extend themselves and let their emotions run away with them. You don’t want to end up in a position where you’ve put so much into the renovations that you find yourself stressing about how to pay for them.
A helpful way to keep expenses in line with your budget is to determine what dollar amount you can invest and then work back from there to see what you can and can’t afford. A proper budget includes every little expense, too. Don’t just think about the most costly components, like labor and key materials, as all the other bits and pieces can quickly add up too. For example, there could be expenses like council permits, insurance and legal and/or accounting fees.
When it comes to finances, you may need to get a loan of some sort to pay for the remodel. If so, do your research. Look into current home equity loan rates and see which lenders have the best fee structures, and the best terms and conditions to suit your individual needs. This is an important part to being able to remodel on a budget.
Create a Plan
To make it easier to keep renovation work on track and within budget, create a schedule for the whole project. The plan may need to be discussed with your builder or other contractors and will likely have to be flexible since timeframes may change, but it will give you a starting point and make it easier to stay organized.
Note down all the different jobs that have to be completed to finalize the project, and then determine in which order they need to be done. This will help prevent the cost of having tradespeople waiting around for materials to arrive or for other workers to finish tasks. Think through the whole home renovation, from start to finish, as this may alert you to potential issues that could arise down the line or additional jobs which need to be added in while you remodel on a budget.
Before renovating work begins, get clear on what kind of work will and won’t add value to your home. Remember, each suburb varies, and even different streets within suburbs can warrant different types of work. Understand who the target buyer(s) would be in your area and what kinds of features and design they prefer. Even if you don’t plan on selling your home for years, think about these things, so you don’t waste money on projects you’ll never get a financial return on.
For example, retirees have different needs to young couples, while large families look for different features to singles, and so on. A pool might be a big plus for families with children, but a downside for busy professionals, while all the latest tech installations might be a must for young couples, but a hindrance for seniors.
It pays to speak with real estate agents for advice on what it is that fetches the most value in your suburb and who the main buyers are. You can also pick up a lot from attending open homes and auctions and doing research online to find out what homes sell for. Armed with this data, plan out
Save Money on Materials, Labor and Financing Costs
Lastly, you can save significant money by being smart about how you outlay money on materials, labor and financing costs. For instance, you may be able to find good-quality secondhand materials, such as recycled timber floorboards or doors, or you may be able to cut costs on new appliances by buying when sales are on.
As for labor, if there are tasks you can do yourself, or have handy friends or family members do for you, this can lead to big savings making