Unexpected Home Renovation Costs That Blow The Budget

set a budget before starting home renovations

It’s common sense for homeowners to set a budget before starting home renovations, yet often by the end of a renovation, the final cost can end up being thousands more than expected. So how does this happen?

Well, when you start knocking down walls you might find a few surprises that you didn’t know existed, such as mediocre repairs by a previous owner or unexpected wiring and plumbing issues. And that’s just the tip of the iceberg. In this 3-part blog series, we’ll take a look at things to look for, things to avoid, and what surprises may be involved with renovating – so you can budget properly before heading to the task.

Home Renovation Blog Series Part 1: Where to Start

Figuring out a starting point for renovating a house can be tricky, let alone budgeting for one. A successful renovation project requires careful planning, and if done right, will save you headaches down the track. Here we look at the key things to think about when planning your home renovation.

Learn how to set a budget & see popular home renovation ideas.

OUTLINE YOUR PROJECT

Even if you have it all mapped out in your head, take some time to write down a plan with the people involved in your renovation project. Assess your ideas against their wishes if there’s more than one person affected by the changes you desire to make.

Plan an evening – or a few – to talk with people close to you so you can bounce ideas off them. A few things to consider before figuring out your budget are:

  • Will your renovation be a simple facelift or a full-fledged remodel?
  • Which and how many rooms, and which items in your home would you like to remove, replace or upgrade?
  • What do you dislike about your home, and what are you happy to keep?
  • Is it a good time to make structural updates such as electrical, plumbing, windows or roofing?

TIMELINES AND BUDGET

Once you have a scope in mind, it’s time to think about timelines and budget. Don’t try and get too excited about rushing into starting your renovation project straight away, as often the more highly-rated renovation companies are booked up for 6 months or longer because of their good reputation.

Often, contractors that say they can start your job sooner are often the ones that end up taking the longest because they tend to take on too many jobs and often get paid by the hour – giving them less incentive to work efficiently.

Always over time how much you’ll need to spend on your renovation. Once you (or contractors) start knocking down walls issues may be found with the existing build that needs attention – and money – to fix. Therefore, your home renovation checklist should include funding options in case of cost blowouts.

When looking to do renovations on your house without the necessary capital – no need to worry, you still have options. If you’re looking to fast finance your home renovations Yes Loans can help. Our personalised loans come with a range of options and loan protection insurance. Once you have finalised your budget contact one of our personalised loan experts or apply direct for fast, efficient pre-approval.

Head on over to Part 2 of our Home Renovation Blog series for tips on how to avoid unwanted and costly surprises along the way.