The right renovation, whether it’s rebuilding a new patio or creating the bathroom of your dreams can add value as well as increase the enjoyment of your home BUT as we all know this cost money.
Here is a beginners guide on what to think about on your next home renovation, including some easy tips to follow that will make the process easier on yourself and your bank account.
First you should start by thinking about why you are doing the renovation? There could be a couple different reasons why, which will ultimately affect how much money you end up spending:
Aesthetics: Creating something beautiful you want to live in which is OK to admit, it is YOUR house!
Maintenance: Taking care of things like rusting pipes which could later on damage the house.
Investing: Spending money on renovations that can later increase the value to your home.
Now that you’ve determined WHY you want to do it, the next step is the scope.
Let’s say you want to do the back deck, does this mean you want patio furniture? Are you doing landscaping? Are you adding custom railing & fencing?
Knowing what it is you want is important so you do not get carried away in spending more money than you need to. Which leads us to the next step of knowing your budget.
When considering your budget creating a spreadsheet can really help this process. This would include all the things that the contractor has said in addition to everything you will need in during the process.
For example the contractor quote would not include the prices of fixtures so you would have to add that to the budget. This is where you will be able to re-adjust your scope and will determine what ultimately matters to you for the renovations.
Now the next step which is the most obvious but we would all love to ignore is how are you going to fund this?
There are four options you can choose from:
Delay: Delay for a year and save as much money before starting.
Do part of it now & do part of it later: Doing it in smaller parts when you can afford it. Instead of putting on credit card consider getting a line of credit or home equity line of credit.
The third way which a lot of people do, is to borrow against the equity of your home. Especially in markets where home prices have increased drastically.
Last little tip is to keep on top of the budget and adjust as you go. You don’t want to end up with a home renovation that you love but a credit card balance that you hate!
We hope that this blog helps you build your next home project within your unique budget!