There’s no denying how expensive a home renovation can be and if you’re feeling daunted about the prospect, it’s best to decide on a budget so you know exactly how much you’re going to be out of pocket. Not only will it give you peace of mind, but it will also make sure that you don’t end up forking out a huge amount later down the line.
Why budget in the first place?
Talk to anyone about their renovations and they’ll tell you that it never went to plan. That’s not to say that the end product wasn’t brilliant, but a renovation is dependent on lots of different factors like the availability of the builders, the availability of materials and the weather.
Simply put, there are lots of variables that are simply out of your control and some of them pose unforeseen costs. By setting a budget, you’ll make sure that you have enough money to see the project through and avoid having to abandon it halfway.
How do I make a budget?
When it comes to making your budget, start with the high costs first. These include fees for the builders, materials and permits if you need them. Of course, it’s tricky to budget down to the very last penny as builders can only give you quotes. In this case, leave some buffer so you have some extra money in case the costs go over their initial quote.
Then investigate the smaller costs. Create an Excel sheet with everything you think you might need, like tools, insurance, interiors and plumbing and electrical costs. And don’t forget the extras like surveyor fees and skip and portaloo hire. These things add up!
How do I free up some money?
Not everyone has a large sum of money sitting in the bank. Indeed, some renovation projects like loft conversions and extensions can cost up to £20k. So, how do you free up that kind of money?
If you’re over 55, you could be eligible for an equity release. An equity release allows you to release funds from your property, providing enough money for you to finance your renovation project. Alternatively, you could arrange a finance plan with your contractors and pay the costs in instalments. In this case, you will also need to pay interest.
Finally, a home improvement loan is also an option and is also paid back with additional interest.
Make savings wherever possible
If your budget is somewhat spiralling out of control, make savings by looking for great deals on materials; buying in bulk is a real money saver! Decrease the amount your builders have to do by going DIY wherever possible. That includes painting, installing and even tiling if you’re up to the job!