Kickstarting your home renovation project
Starting a renovation project can be a rewarding exercise as it can improve the quality of your life and help increase the value of your home. Seeing a renovation project through to completion will give you a real sense of personal achievement. Here are the three most common questions home renovators ask themselves before starting out.
Where do I start?
The first thing you need to do is decide on the scope of your renovation. For instance, are you thinking of tearing down a wall? If so - will it require an expensive electrical work or plumbing to complete it? How long will the whole project take, and are you comfortable with that time period?
Next, think about what future buyers might like and what will increase the value of your home. Talk to real estate agents and do your research about what’s popular in the local area – for example; a renovated outdoor area might be worth more in a suburb that’s popular with families.
Internal renovations like a kitchen or bedroom may not need a council approval, but strict rules and regulations often apply to outdoor projects like a deck or extension, so get all the necessary council approvals before you begin.
How do I budget?
After thinking about the scope, write a list of everything you think you’ll need - big and small. As a general rule, you should start with a complete renovation budget.
Factor in all the tools that you may need like drills and sanders and consider big-ticket items like cabinets, benchtops and kickboards, to name a few. Research the prices of every thing you will need and then include these in your total budget.
Next is to get quotes from tradespeople which should include a breakdown of labour and materials. Being sure to consult a few so you get an idea of what’s reasonable and what you might be able to save by buying some of the materials yourself.
Finally, add a buffer onto your budget for anything unexpected. Project costs can often blow out, so it’s good to be prepared.
Can I borrow money for home improvements?
There are options available when it comes to financing home renovations:
You can obtain a personal loan to get your projects underway, but get professional advice to make sure that this is the best financing option for you to achieve your goals.
Refinancing your home loan is also an option If you have enough equity in your home. It’s good to get a valuation every so often to find out how much equity you have, and use that money to fund improvements that are likely to give you a strong capital gain.
If the first two options don’t suit your situation, don’t despair. Completing one stage at a time then saving up for the next may be the best way to go.
Renovations aren’t always easy – they take a lot of planning and thought, but they can be exciting and come with the possibility of great rewards – emotionally and financially.
If you need guidance on how to finance your renovation project, speak to your trusted Mortgage Broker today.
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