In many instances, doing the renovation itself is not the hardest thing but it’s managing your budget for the project. Here are some quick tips to help you in budgeting for your dream home renovation.
1. Choose a Loan Wisely
When requesting a loan for your renovation, you can choose between fixed interest rate or variable interest rates. If you think market rates will go up, then choose the fixed approach. This way it will be easier to know how much each monthly payment will be and be able to plan ahead better. You will also be protected when rates go up, though you will not benefit when interest rates go down.
If you think interest rates will significantly go down within your loan term, consider the variable approach. Rates will fluctuate and so will your payments, but you could save money if you are borrowing while interest rates are high and are expected to go down over the period of your loan.
2. Don’t Borrow More
You could have a buffer amount to anticipate unexpected expenses, but avoid borrowing more than what you really need. Remember that the bigger your loan amount, the bigger interest you will be paying, plus you could possibly be charged with bigger fees. There are lenders who will offer the option to borrow up to a total amount but only charge you interest on what you draw down. You could look for such a loan facility to have a cushion in case you need it, but be sure you understand that you will be charged based on the total loan amount.
3. Tap Your Existing Loan
If you have an existing home loan, use it to fund your home renovation. You can do this by tapping into the equity in your home, by increasing or refinancing your current loan. You may need to have your loan restructured to do this. Just make sure you understand what is expected in terms of repayments. Inquire about the maximum percentage you can borrow using this approach. You can also ask your mortgage broker what to do in case you want to borrow more.
4. Avoid DIY on Big Jobs
Avoid the disaster of trying to accomplish an important job yourself -- and failing. Always outsource the big jobs and hire tradies for plumbing work, electrical jobs, and structural work. The experts at Renovation Store have several tips on how much to pay a professional tradie. To get the best, ask for at least three quotes so you can better assess cost options and timelines before you sign up a professional.
5. Shop Online to Cut Costs
Learn to shop around so that you get lower prices, but try to check out first reputable online shops that can often offer better prices. Online stores are able to cut retail costs because they do not have to operate a showroom and avoid middlemen margins. You could also ask for trade prices and seek bargains online. Plus, you save on time and effort because online shops will deliver to you instead of you going to the store. You can start with checking out the latest deals at Renovator Store.
6. Look at Long-Term Savings
There are also ways you can save in the long run, such as buying energy efficient LED lights, investing in rainwater tanks, and the like. For structural renovations, study how you can maximise natural light and heat with well-planned windows, for instance. These options may cost a bit more initially but will add up to much savings through the years.
7. Keep to Your Budget by Staying on Schedule
Plan your renovation well and make sure you follow your renovation plan. Stick to your schedules and avoid delays so that you don’t have to pay loan interest for a longer time. This will also help you avoid headaches caused by delays, so make the effort to look for licensed contractors who are known to complete their work on time.
There are other ways to save some of your hard-earned cash for your home renovation, but just follow some of the above tips and see your dream home renovation become a reality soon. Enjoy your renovation!
About the author
RG Sayson is a web content writer for the Renovation Store. These are practical renovation budgeting tips based on actual renovation experiences of Scott Pendlebury, Founding Director of Renovator Store, and similar sources.
Get Home Renovation Quotes