Tips to Go for Housing Renovation Without Breaking The Bank

A comfortable, well-designed home appeals to all! While there are various DIY methods and steps to renovate your home, professional renovation contractors prove to be a far more efficient option. That said, before hiring a renovator there are some crucial factors that you must consider such as your budget, and the magnitude of renovation. 

This blog post covers three most effective tips to help you go about your housing renovation project without breaking the bank.

Take a look.

1. Set Realistic Renovation Goals and Budget

First things first! Before you undertake a home renovation project, you must set aside a fixed number of dollars as budget. Often, homeowners make this mistake of not selecting an upper cap to their home rehab expenses and end up paying a lot more out of their pocket. To avoid unnecessary expenses you need to factor in your savings, along with the following three neglected expenses:

• Rental property – If you are hiring renovators to undertake a large scale renovation, you may have to move out and rent a place.
• Eating out - renovating a kitchen and refitting it with newer, chic amenities, can result in a lot of eating outs or take aways from nearby dining joints.
• Storage – with a large scale home rehab, you will need to store your belongings in a secure place that will incur additional costs.

2. Prepare a Parallel Contingency Budget

Large scale house renovations come with several unexpected expenses and contingencies. If you really wish to avoid breaking the bank, you must create an additional 10 percent contingency into your budget that will cover any such instances of overspending or unprecedented costs. You might also have to face unexpected delays during the house revamping such as sick tradies, or poor weather, that can cost more money. Having a buffer amount, therefore, helps you to negate any compromises on your home re-decor.

3. Choose the Best Funding Option

Often, homeowners do not have significant cash reserves to fund the renovations and, therefore, seek other financing options. Remember, there are no right or wrong methods to fund renovations, it all depends on your choice of method that seems the most suitable. We have some factors listed below that can you must merit-in. These include:

• Use your house’s equity
• Sign up for a low interest credit card
• Apply for a secured or unsecured personal loan
• Refinance your mortgage
• Use a line of credit
• Maximise the redraw facility

Wrapping Up

Housing renovation projects involve several unexpected costs that often lead to overspending. To avoid, over expenditure, it is important that you do your homework and prepare well in advance. You must perform due diligence when shortlisting your renovation contractor, and have a contingency fund in place to overcome any unexpected costs.

Lastly, explore your financing options to aide your renovation project such as low interest credit cards, or secured loans.