How to Keep Your Finances in Order While Preparing for a Home Renovation
While designing and preparing for a complete home renovation can be difficult and need you to move out and prepare for weeks, the financial aspects of it are probably the most difficult to manage and are the reason for the most home renovation failures. Home renovations are quite costly, and most people don’t know how to calculate all the costs beforehand and get their finances in order. That’s why they run out of money mid-renovation or they need to contend with lower quality services in the latter parts of the renovation. This article will help you get everything in order and have a perfect home renovation experience:
How Much are You Willing to Spend?
The first thing you need to determine before going along with any renovation is your budget. This will determine the quality, the scope, and the timeline of your home renovation.
- Low budget renovation: if you are constrained by a low budget, you need to primarily look at the high-value and crucial areas of your home for renovation. You don’t have a lot of money to waste on getting QoL increasing non-crucial amenities, but rather, your money is best spent on ensuring the basics in your home are all solid. An example of a crucial renovation would be ensuring the widow frames aren’t broken and allow in cold air from outside is extremely important in making sure your home’s foundation doesn’t deteriorate over time.
- Medium budget renovation: in this budget range, you can pay for a few extra things aside from the necessary renovations. It is a good idea to make a list of all the things you want inside your house and then ordering them by priority, cost, and value, and then picking out a few choices that you think maximize your QoL for the money spent.
- High budget renovation: with a high budget, you’ll be able to do a lot of renovations and carry out high-value projects that could transform your whole home. For these kinds of renovations, it is a good idea, in our opinion, to ensure that the renovations not only make your house look better and raise your quality of life but renovations that will also increase your home’s value on the market.
Beware of Hidden Costs and Values
When renovating your home, one of the main things you need to be aware of and keep in mind is the number of hidden costs involved in renovating your home. You might plan the whole thing beforehand and even do research and contact a few real estate agents about the cost, but when the renovations start, you realize there were a lot of things you did not account for. This will throw a wrench in your plan and puts you in a precarious financial position.
- Getting permits and building permissions: The amount of bureaucracy you need to go through before you get your renovation plans approved by the authorities depends on how much changes you want to make and what country and state you live in. But, for any substantial attempt at renovation, like installing beautiful outdoor glass balustrade systems, you’ll likely need permits and they’ll likely cost a pretty penny.
- Removals and moving out: You might need to move out and move your furniture out if the renovations are wide-reaching and make changes to the structure of your home. Moving out the furniture and renting a hotel, even if cheap, could run you up anywhere from hundreds to thousands of dollars. This is not to mention all the rubbish you’ll have to remove through a service like Trans Metal to clean up.
- Increases in home value: To truly calculate how much a renovation costs you, you also need to calculate how much it increases your home value. For example, ensuring you have a proper garden with fountains, lamps, and benches might cost you quite a bit, but if you consider how much it increases your home’s value, you might even be making money off of the renovation. To get an accurate picture, it is always important to calculate the added value.