5 Mindful Tips to Help You Stick to Your Renovation Budget
Avoid getting lost in a sea of renovation decisions by using these five steps as an anchor
Renovating is a great way to stay in the house you have, and making changes can improve the way you live, but everyone’s heard the horror stories of going 50 per cent or more over budget. In truth, even trades will admit it’s hard to provide an exact price for their work, because there are often unforeseen circumstances that could cause the price to rise.
I always recommend factoring in about 20 per cent above what you think you should budget, but knowing what you want from the very beginning – and sticking to those goals – can greatly help your project stay on track.
I always recommend factoring in about 20 per cent above what you think you should budget, but knowing what you want from the very beginning – and sticking to those goals – can greatly help your project stay on track.
2. Set a budget, then subtract 20 per cent to 30 per cent for contingencies
Create a budget you’re comfortable with, then set aside 20 per cent of that to cover the unknowns that inevitably come up.
You should avoid the temptation to spend your contingency before you begin construction. A contingency is not a slush fund that you can direct towards appliance and finish upgrades. A contingency is an integral part of the cost of building, especially renovating, that is as deserving of budget allocation as any other component of your project. Unknowns are very hard to predict and can easily drive your project over budget otherwise.
Create a budget you’re comfortable with, then set aside 20 per cent of that to cover the unknowns that inevitably come up.
You should avoid the temptation to spend your contingency before you begin construction. A contingency is not a slush fund that you can direct towards appliance and finish upgrades. A contingency is an integral part of the cost of building, especially renovating, that is as deserving of budget allocation as any other component of your project. Unknowns are very hard to predict and can easily drive your project over budget otherwise.
3. Take the time to consider your must-haves
When you make an initial list of wants, there will probably be many competing items, but don’t start whittling it down just yet. You’ll want to put it aside, discuss it with family or friends, and perhaps post a discussion on Houzz. Talking about your ideas can help to clarify the project.
Designers can help you understand the impact of what you want to achieve (and often help you find efficient ways to get there), but you’re the expert on your life. Sometimes it pays to document how you do things around the house (such as cook dinner or host guests for dinner). This can help to pinpoint areas that are frustrating. Those are the places to concentrate on, so you can get the most from your budget.
Ready to find a professional to renovate your home? Look no further than Houzz, where you can see a pro’s past projects and read client reviews for pros in your area.
When you make an initial list of wants, there will probably be many competing items, but don’t start whittling it down just yet. You’ll want to put it aside, discuss it with family or friends, and perhaps post a discussion on Houzz. Talking about your ideas can help to clarify the project.
Designers can help you understand the impact of what you want to achieve (and often help you find efficient ways to get there), but you’re the expert on your life. Sometimes it pays to document how you do things around the house (such as cook dinner or host guests for dinner). This can help to pinpoint areas that are frustrating. Those are the places to concentrate on, so you can get the most from your budget.
Ready to find a professional to renovate your home? Look no further than Houzz, where you can see a pro’s past projects and read client reviews for pros in your area.
4. Write down your priorities
You can also write down your priorities and store them in a document online. This can seem like a waste of time (you know what you want), but, in the thick of getting your project done, there are many shiny objects that can stand between you and a successful renovation. Having your priorities written down will allow you to stand back in the heat of the moment and evaluate if a new option will get you closer to your goals or further away.
In my experience, about 60 to 70 per cent of the choices that get made on the spur of the moment cost more than sticking to the original plan. Sometimes, it’s because something needs to be redone or upgraded that wasn’t taken into account during the design phase (such as reinforcing a tiled floor).
Other times, it’s simply because a friend suggests that something seen on TV would look good in your project. Whatever the case, if you have a list to refer to, it’s easier to evaluate if those changes will get you closer to your goals.
You can also write down your priorities and store them in a document online. This can seem like a waste of time (you know what you want), but, in the thick of getting your project done, there are many shiny objects that can stand between you and a successful renovation. Having your priorities written down will allow you to stand back in the heat of the moment and evaluate if a new option will get you closer to your goals or further away.
In my experience, about 60 to 70 per cent of the choices that get made on the spur of the moment cost more than sticking to the original plan. Sometimes, it’s because something needs to be redone or upgraded that wasn’t taken into account during the design phase (such as reinforcing a tiled floor).
Other times, it’s simply because a friend suggests that something seen on TV would look good in your project. Whatever the case, if you have a list to refer to, it’s easier to evaluate if those changes will get you closer to your goals.
5. Refer back to your priorities later in the project
Even though there are probably many decisions clamouring for your attention, referring back to your list will help you maintain a clear head when it seems as if there are too many decisions to make.
Construction has a way of distracting homeowners from the overall goal, because there are so many details to consider. Oak or bamboo flooring? Spotlights or pendants? In discussions with your designer, you can put decisions into roughly two categories: personal preference (usually details such as fixtures) and design direction (things that impact the overall goals you established in your priorities list). The difference is that the former probably won’t impact on whether you get a great environment to cook meals in; the latter would.
Your turn
Did you find this story useful? Tell us in the Comments below, like this story, save the images for inspiration, and join the conversation.
More
Craving more renovation advice? Don’t miss this How to Survive a Kitchen Renovation
Even though there are probably many decisions clamouring for your attention, referring back to your list will help you maintain a clear head when it seems as if there are too many decisions to make.
Construction has a way of distracting homeowners from the overall goal, because there are so many details to consider. Oak or bamboo flooring? Spotlights or pendants? In discussions with your designer, you can put decisions into roughly two categories: personal preference (usually details such as fixtures) and design direction (things that impact the overall goals you established in your priorities list). The difference is that the former probably won’t impact on whether you get a great environment to cook meals in; the latter would.
Your turn
Did you find this story useful? Tell us in the Comments below, like this story, save the images for inspiration, and join the conversation.
More
Craving more renovation advice? Don’t miss this How to Survive a Kitchen Renovation
Are you seeking to increase your home’s resale value? Improve the layout? Boost energy-efficiency? It could be a combination of a number of things, but make sure you’re being rational. If you want high-quality appliances but you intend to eat out or call in takeaways most evenings, you might want to reconsider.
In one project, our client wanted to double the size of his kitchen because it felt as if he had no benchtop space. Rather than simply making the kitchen bigger, we talked to him about how he prepares meals and helped to increase the amount of usable preparation space.