- The Savvy Promise
It’s that time again where we usher in the new year with the hope of finally doing things right. Renovating your home may be one of the things that you want to achieve as a resolution. However, before you whip out the toolbox or call in the professionals here are a few things to consider to help you stick to your budget.
Make a list and check it twice
Seeing your home renovation plans in black and white can give you a good idea of what needs to be a top priority, the costs involved, and how much time it will take to complete the project. According to the Australian Bureau of Statistics, Aussies spent $2.1 billion on residential property renovations in the June quarter. The cost of renovating will depend on what you are planning on renovating which is why planning is vital.
Know the time frame
Time is money, which is why checking the needed time frame to complete your renovation project is essential. If you are carrying out a big project that will require the hiring of a professional, check with them to see how long it will take for your renovations to be completed to avoid additional costs that can burn a hole in your budget.
Have a budget buffer
It doesn’t matter if you are carrying out a large- or small-scale project, it pays to have a budget buffer. According to Houzz, 34% of Australians stated that their main challenge was staying on budget. Creating a realistic budget is the first step. Having a buffer in place is the second step that can help you stick to your budget. Once you have calculated the total cost of renovations set a 10%-20% buffer.
Renovations that give you a return on investment
As much as you will be putting money into your home you want to aim to get the most out of your investments. The common mistake that some Aussies make is to carry out renovations without researching if the planned renovations will increase the value of their home or not. Speaking to a property appraiser can let you know if you are getting a good return on your investment or not. Keep in mind to carry out renovations that potential buyers will be interested in.
Keep track of what you spend on
Tracking your budget can help you prioritize what is needed. It can also prevent you from splurging on items that won't necessarily help you. Keeping a record of receipts and remaining expenses can give you a clear idea of how much wiggle room you have in your budget.
Always remember to research and compare to choose an option that is suitable for your finances. Speaking to a financial advisor or a broker can also help you narrow down a finance option that will be suitable for the type of renovation that you are planning to carry out.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.