Top Budgeting Tips for Your Upcoming Renovation Project

The easiest part of renovation projects, whether it’s for your bathroom, kitchen, or your entire home, is figuring out what you want. Planning and setting a budget for the renovation assignment (or in other words how much you can spend) is often the toughest part. Indeed, there are ways to do it but if you want handy tips to set a budget for your next renovation assignment then go over the following with diligence:

Estimate Overall Costs

Suppose, you plan to use renovation contractor or a design professional, talk about your dream renovation project with them to get an estimate of overall costs. This will enable you to get a hold over the costs involved in your renovation assignment, be it your bathroom renovation, kitchen renovation or revamping your complete home. 

Figuring Out Your Spending Limits

Once you’ve estimated the overall costs for your kitchen overhaul or bathroom renovation assignment, the next thing is to figure out from which source you’ll get the money. If you have adequate funds with you then it’s quite simple but in case you have to take out a loan from a bank or financial institution then it is crucial to know the crux of it, as to how the loan will burden your monthly spending. Here are two major types of loan alternatives:

  1. The line of credit or equity line loans
  2. Cash out refinance 

If you’re disciplined in your spending then equity line loans will be beneficial to you. Equity line loan is typically secured by your home equity, so it qualifies for a lower interest rate compared to other loan types and you can deduct the loan interest from your taxes. Here, the minimum amount payable is only particular month’s interest and that you’re not required to pay the principal amount. It is similar to the minimum amount that gets due on your credit card every month – that means getting out of the loan is not easy. 

However, you can create your own schedule for loan repayments. For instance, in addition to the monthly interest on the loan, you can pay 1/120th of the principal amount for a 10-year loan term or 1/60th for a 5-year loan term. If you can’t stick to this, you should better consider other loan options. 

Obtain Quote Estimates from Different Contractors/ Renovators  

Prior to obtaining quotations, knowing what you want is imperative, writing down the kind of kitchen benchtop material, sink and taps you require. By determining these details in advance, you can make sure that all potential renovators are pricing the same items. Ask your neighbours, friends and colleagues to recommend contractors they know and collect at least three. Now, provide each one with your renovation project description and precise product lists and request an itemised quote. To find the right renovator/ contractor – request to see their recent work, check out references and search online websites that offer peer reviews of renovators/ contractors.

Sometimes Costs Can Break the Set Budget

When you finalise a contractor, take their estimated quote and add an additional 20% for unexpected expenses and revisions that can happen to the project.

Define Your Priorities and Try to Trim Down the Project to Suit Your Budget

If what you dreamed is not in accord with your budget, cautiously trim down your expectations – probably you’ll finish off contented, able to meet financial obligations. You may ask your contractor for hints on how to cut costs. This way, he will be able to assist you to stay within your budget – following can be the probabilities:

  • Trim down the project – for instance, you can cut back on the bathroom extension from 90 square feet to 70 square feet.
  • Select an economical option – instead of granite or quartz engineered stone benchtop, you can select laminate benchtops, which is less expensive and an economical option. 
  • Buying items yourself – such as materials, fixtures and appliances, you can save up to 20% of your project costs. Nonetheless, make sure to inform your contractor about your buying efforts.
  • Retain old, existing items – that still work in good condition such as appliances, lighting fixtures etc., as they can be upgraded at a later stage. 

Final Words

Keep the above points in mind when it’s time to manage your renovation assignment. Whether you’re going to renovate your existing kitchen, bathroom or an entire home, you’ll have to coordinate with the reputable and licensed plumber and electrician respectively for accomplishing plumbing work and electrical work