Whether you are renovating now or in the future, it’s always beneficial to be prepared. Without proper planning, renovation budgets can quickly spiral out of control. According to research conducted by the Commonwealth Bank the average renovation goes over budget by nearly $3,000 due to unexpected material and labour costs.
To help you nail your budget from the start, we’ve listed 5 effective ways to stick to your renovation budget!
- ENGAGE A BUILDER EARLY IN THE PROCESS.
Engaging a builder at the planning stage gives more transparency over the actual costs to build and can help you to plan your budget more realistically. Don’t try and guesstimate your costs, to manage expectation from plans to build your builder can do a cost plan at concept stage, this will give you a more accurate estimate of the build. Being realistic of what your money can get from the outset will avoid disappointment in the long run.
- BE SPECIFIC
To avoid changing plans mid-project, spend time creating a clear picture of what you’re looking to accomplish with your renovation. You may find yourself tearing out work, or worse, having to live with something you really don’t like because you don’t have the time or money to change it. The more you can tell your contractors about what you want the product to look like, the closer you’ll get to achieving your desired outcome – and on budget!
- PREPARE FOR THE UNEXPECTED
It’s better to be safe than sorry! Having contingency of around 5-10% gives you enough wiggle room if any unexpected events arise. If you have a much older heritage property, or a terrace-style home, a contingency of 30% is more realistic for dealing with unforeseen structural issues or ground works.
- KEEP TRACK
Make sure you’re constantly monitoring your renovation budget throughout the entire process and keeping track of your expenses. When you frequently account for what you’ve spent, it’s easier to see where you can make cuts if you’re going over-budget, or where you can splurge if you’re under-budget.
- LEARN TO COMPROMISE
Your home doesn’t always need major changes to have a refresh. Listing things in order of importance will help you later when determining how much you can spend and which projects you’ll need to drop to avoid going over budget.
Who can of course discount working with professionals! Choosing a builder experienced with your type of renovation – especially for Terraces and Heritage Homes – will help ensure you are being guided by expert advice from the start! If you are also using an architect, ensuring they will work well with your builder will also help to keep your project on budget and on schedule!
Have a project in mind? Blueprint Projects are extension and renovation experts! We are always ready to have chat and help you cost out your potential project using our experience and know-how!