How to Keep Your Reno Budget on Track
Renovating expert Naomi Findlay shares valuable tips for preventing your building budget from blowing out
Naomi Findlay
22 March 2019
In my profession, I’ve seen many people fail in their renovations simply because they ran out of time and money. It’s heartbreaking – and so easy to avoid. Most people don’t realise that the majority of their success relies on their ability to plan well at the very start. Here are my top tips for keeping your budget on track throughout your renovation.
Break it down
Whether you’re renovating for profit or pleasure, it is very easy to underestimate the costs involved. If your budget blows out, you’re not going to be able to afford those finishing touches that can be so important to the end product.
During the planning phase, break down your budget in detail – this way you’re less likely to exceed it during building works. It will also allow you to be realistic about what you can and can’t achieve.
Be sure to factor in costs such as purchase price, stamp duty, insurance and costs for property improvements. And don’t forget about hidden renovation costs, such as demolition and site clean up.
Whether you’re renovating for profit or pleasure, it is very easy to underestimate the costs involved. If your budget blows out, you’re not going to be able to afford those finishing touches that can be so important to the end product.
During the planning phase, break down your budget in detail – this way you’re less likely to exceed it during building works. It will also allow you to be realistic about what you can and can’t achieve.
Be sure to factor in costs such as purchase price, stamp duty, insurance and costs for property improvements. And don’t forget about hidden renovation costs, such as demolition and site clean up.
Tip: Site clean-up costs can get expensive. You can minimise the costs by giving away or selling as much construction material as you can before the clean-up process.
Plan for the worst
Doing a phenomenal property inspection is so essential. If I hadn’t carried out thorough inspections in some of my own renovations to discover things such as asbestos and incorrect plumbing, there’s no way I could have made the type of profit I have.
But remember, always expect some surprises and plan for them no matter how good an inspection you undertake.
Doing a phenomenal property inspection is so essential. If I hadn’t carried out thorough inspections in some of my own renovations to discover things such as asbestos and incorrect plumbing, there’s no way I could have made the type of profit I have.
But remember, always expect some surprises and plan for them no matter how good an inspection you undertake.
Building and pest inspections can cost anything from $150 to $500, depending on the reports you ask for and your property’s location. But unless you are highly experienced in this field and are working closely with your builder and can carry out the inspection yourself, it’s an investment worth making.
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Don’t get demo happy
Don’t go into every renovation thinking that everything needs to be ripped out. Too often, people are so keen to tear things out that it’s almost as though they’re suffering from demolition fever.
One of your first steps when putting together a renovation plan is to see what is intact and can stay. It’s a fine line, obviously – you need to make sure you are not being sentimental and going too far with the restoration and associated costs. But if those existing bathroom floor tiles will work with the new look, why remove them? Products and time are money.
Don’t go into every renovation thinking that everything needs to be ripped out. Too often, people are so keen to tear things out that it’s almost as though they’re suffering from demolition fever.
One of your first steps when putting together a renovation plan is to see what is intact and can stay. It’s a fine line, obviously – you need to make sure you are not being sentimental and going too far with the restoration and associated costs. But if those existing bathroom floor tiles will work with the new look, why remove them? Products and time are money.
Here are some questions to ask yourself:
- Can you keep the same kitchen, bathroom and/or laundry layout so you don’t have to go to the expense of moving pipes and electrics (which can be costly)?
- If your bathroom tiles and bathtub are a little outdated but still in good condition, can you refresh them with specialist paint?
- What else in the property can you update with a fresh coat of paint?
- Can you update kitchen cabinetry with new handles?
- Can you rejuvinate existing timber floorboards?
Have a buffer
Even after 114 renovations, I still don’t know exactly what is concealed behind the walls in the projects I take on (and this is even with extensive property inspections). So a buffer in your budget is essential, no matter how experienced you are.
Sometimes, things will happen that are simply beyond your control. You can’t just turn a blind eye to them because they weren’t jotted down in your original budget. And sometimes you won’t be able to pinch those couple of thousand dollars from another section of your budget without affecting the outcome of the final space.
Even after 114 renovations, I still don’t know exactly what is concealed behind the walls in the projects I take on (and this is even with extensive property inspections). So a buffer in your budget is essential, no matter how experienced you are.
Sometimes, things will happen that are simply beyond your control. You can’t just turn a blind eye to them because they weren’t jotted down in your original budget. And sometimes you won’t be able to pinch those couple of thousand dollars from another section of your budget without affecting the outcome of the final space.
When unexpected things happen, that’s when your buffer cash comes into play. As a minimum, I would recommend setting aside 15 percent of your total budget for unwelcome surprises.
13 Hidden Costs Often Missing From Builders’ Quotes
13 Hidden Costs Often Missing From Builders’ Quotes
Tell us
What’s your top tip for keeping your renovation budget on track? Tell us in the Comments below. And remember to like this story, save your favourite images and join the conversation.
More
Thinking of building or renovating this year? Find a local builder here and chat through your options
What’s your top tip for keeping your renovation budget on track? Tell us in the Comments below. And remember to like this story, save your favourite images and join the conversation.
More
Thinking of building or renovating this year? Find a local builder here and chat through your options
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Great article.
If you're using an experienced and professionally run construction company then all of the above should be reflected in their price. Often Builder's will leave the smaller details off their quote as so many clients choose their builder based on price alone. The costs are added in throughout the job and your budget is blown. Always make sure you're looking for a construction company that knows their stuff rather than being the cheapest.