New year, new home? Whether you’re planning an extensive renovation or a simple freshen up to your home, before you rush out and start renovating it’s a good idea to think about these few things.
- Plan your budget
Setting a budget will ensure you get a quality renovation without overspending. Create a checklist of the work you’d like to have done and price everything out. Talk to a friend who may have been through a similar renovation to get an idea of the costs you can expect to pay.
Do your homework online by browsing the local DIY home stores to get a rough estimate of building costs. Check your budget with a builder to ensure you’re on track. Use an online budget tracker to stay on top of your incomings and outgoings. And remember to build in a little extra as a contingency should something go wrong.
- Don’t over-capitalise
Renovations add value to your home, certainly, but it’s just as easy to over-capitalise. Keep in mind that the amount you invest in the renovation needs to be recovered when you eventually sell. As a general rule, aim to spend no more than 10% of the property’s value on renovations and alterations, so if you are planning a major renovation you may want to have your property valued before you begin working on your budget.
Remember, a home renovation needn’t be expensive and extensive! Sometimes the smallest improvements can make the biggest difference: a fresh coat of paint, new door handles or kitchen taps, or a more modern light fitting.
- Be realistic
Once you’ve set your budget, stick to it. Be realistic in what you can achieve with the budget you have in mind. You may need to compromise in certain areas so be flexible in your approach. If you’re absolutely committed to having something that is way out of your budget – that gourmet kitchen you simply can’t live without – you may need to do your renovation in stages and prioritise the work that needs to be done first or the work that you can afford.
- Do your research
With so much information at your fingertips – the internet, design magazines, friends and family who may have recently renovated – it’s easy to arm yourself with knowledge and prepare yourself for what to expect in a home renovation. Create a photo library of ideas you like, scour shops and the internet for inspiration, and have a general idea of how you want the space to look and feel.
- Find the right contractor
Good referrals are usually the best means of finding the right contractor. Check out websites for reviews of local builders and contractors, and get several quotes and compare to ensure you getting the best price and the best person. Remember, cheapest is seldom best.
Planning is key
To help set you up financially and so you know how much can spend, talk to a Mortgage Express adviser or broker about refinancing your mortgage in time to plan your home renovation. Because we work with a variety of lenders, we’ll shop around on your behalf to find the right finance option for you.
Disclaimer:
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.
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