Home renovations are exciting, but they are also very expensive. They are a rigorous back and forth process that requires a lot of planning and an open mind that is ready for any unexpected challenges. Therefore, it is important to have a solid savings plan and budget so you know how to effectively distribute your money throughout your projects.
How to save and budget for your home renovations
Here is a breakdown of how you can set up a savings strategy, a detailed budget, and some tips and tricks on how you can optimise the value of your house.
Open a separate savings account
When you start your savings journey for your home renovations, the first thing you should do is to open a dedicated savings account to eliminate spending the money on other expenses.
Formulate a savings strategy
Property24 recommends coming up with a rough estimate of the cost of the renovations to decide on a monthly savings amount. For example, if you have a budget of R60.000, you can commit to a monthly saving of R5000 for 12 months. You can also do the basic saving of 10% of your salary or any percentage that is comfortable for you.
Find a good but affordable contractor
Choosing a contractor will probably be the most important decision for your home remodel. These are the experts that ensure that your renovation goes as smooth as possible because they can handle the equipment needed, the material, and the necessary permits.
Better home and Garden recommends getting at least three different estimates and quotations because this will give you an idea of how much remodel will cost, and the calibre of work that will be delivered by the different contracting companies.
Create a detailed budget
Having a detailed budget will keep you on track with how much you’re spending. Record a detailed budget of each project and write down all the materials bought for a better overview.
Furthermore, according to Home Method, contractors recommend having a 20% leeway in your budget for any unexpected issues. Especially if you are renovating an old house because there is a high possibility that some of the water pipes and electricity will need to be fixed.
Think about your house’s resale value
Renovating must also be a strategic way of adding more value to your house. If you ever decide to sell your home, there must be a guarantee that you will get back all the money you invested. The Appraisal Institute of Canada says renovations with the highest return are
- Updating the kitchen.
- Updating the bathroom.
- Repainting the interior and exterior of the home in tones that appeal to the market
- Updating the décor (replacing the lighting and plumbing fixtures, the counters, damaged or faulty flooring, etc.).
- Decluttering the place
Find things you can DIY
In case of any unpredictable expenses, there are ways of cutting costs by just updating some of your decorative elements yourself. Eddie Maestri, the architect for Maestri Studio, says, “not everything needs to be new. So many things that may seem passe—old mouldings, hardware, and lighting have character and design detail strength that gets overlooked”.