How to Budget for a Home Renovation Project - MissLJBeauty

How to Budget for a Home Renovation Project



A home renovation can add major value to your property, and make it much more pleasant and fulfilling to live in. But getting the most from this kind of project means keeping control of your budget. Costs can quickly escalate, particularly when the project in question is complex. Let’s look at how we might rein them in.

Assess your Finances

A project of this kind should commence from a frank and thorough assessment of your finances. To put it another way: how much money is available for the project? You might think about your savings, as well as any potential borrowing you might do. If you intend to resell your property later, the cost of borrowing might be offset by the eventual value of your property. When taking on debt, be sure to factor in the cost of interest into your overall budget.
 
Renovation Goals

Once you have an idea of your finances, you’ll be able to set out your goals. What parts of the home are you concerned with, and what specific changes do you want to make to them?

Once your goals are clear, you’ll find it much easier to decide what to spend your budget on. In some cases, this might allow you to spend more money on what really matters to you. For example, bespoke fitted storage solutions might make a great addition to a home office.

Gather quotes

You’ll want to source multiple quotes from multiple contractors. Look for recommendations from friends and trusted tradespeople. In some cases, you might find that the quotes differ hugely – even if the quality of work does not.

On the other hand, it’s vital that you don’t cut corners, and that you ensure that all of the traders you hire are qualified to perform the work you’re hiring them to do. Consult online databases like the Gas Safe Register, and give yourself that vital peace of mind.

Track and monitor

Budgeting for a renovation isn’t just a one-off task that’s finished before work gets started. It’s an ongoing effort that lasts right up until the work is complete. You’ll need to monitor your spending, and compare your expected costs to the ones you’re actually incurring. By doing this, you’ll be able to spot mistakes and patterns of overspending. This will allow you to adjust your budget as you go, and avoid getting into financial trouble.

 

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