The housing market has become unpredictable, with the unknown repercussions of Brexit weighing on people’s minds. As a result, many homeowners are choosing to improve their current home rather than selling up and moving on. With a renovation on the cards, the first thing that needs to be established is the cost.
Many people start with a rough figure in their minds, but there are some additional expenses that often aren’t taken into consideration within this initial stage. Fear not, we’ve put together a handy guide to take you through the process.
As a general rule of thumb, you shouldn’t spend more than 15-20% of your home’s value on a single room. If you spend more than this amount, you will find that the renovation will simply not create a proportional value when the time comes to sell your house.
It’s essential that any work you carry out is going to add value to your home. @EntrepreneurIND have also put together a great blog on ‘10 Tips to Renovate your House Beautifully yet Economically’, which may help to give you some inspiration too.
One of the best ways to make sure that your renovation stays within budget is to have a clear direction from the beginning. Know from the outset what you’re prepared to compromise on and what is non-negotiable. To keep on track, so it’s important to list at the start of the project those areas that you simply aren’t prepared to pay less for.
A spreadsheet is the best way to clearly list your expected costs. You can separate the renovation into labour costs, such as for plumbers and architects, fixtures and fittings, and appliances. One main point to consider here is any additional living costs that you may occur whilst the renovation is taking place.
For example, are you going to be able to live in the property whilst the work is being carried out, or will you need to book into a hotel? Do you have pets that need to go into boarding whilst the work is taking place? These little things do add up, and if you haven’t factored them into your initial budget you could see the costs spiralling.
It’s always best to get at least three quotes when it comes to choosing the best contractor to carry out your renovation. This way, you can get a really good idea of average cost for the work.
Remember that most expensive doesn’t necessarily mean highest quality. It’s always great to look at the reviews of the contractors you’re shortlisting to see how highly recommended their services are.
Finally, if you’re looking to cut down on costs wherever possible, the main way you can do this is by project managing and coordinating contractors yourself, rather than having a general contractor. Also, consider doing any painting yourself. This is much cheaper than hiring a professional painter or decorator.
We hope you’ve found this article useful. If you have any further questions about home renovation, or how to budget for this, please contact us today.