New year renovation resolutions that won’t blow your budget

Published on June 17th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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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.

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