Managing The Costs Of A Home Renovation
While Beams helps you manage the costs of your renovation up front, so things don’t spiral and you know what you’re paying, if you’re going it alone managing the costs of a home renovation can be daunting. You may have numerous contractors to manage, suppliers to pay and materials to buy. If you can agree as much of this as possible up front you should be able to manage the process without too much trouble.
Here we give you some things to consider to keep the cost of a home renovation down.
Setting your budget
Assess your finances
The first step is to evaluate your finances and set a realistic budget. Understanding how much you can spend will guide the scope of your project. If your budget doesn't cover your desired renovation, consider saving more or seeking expert advice for cost-effective alternatives.
Plan for contingencies
Expect the unexpected in construction. Delays, accidents, and unforeseen issues can arise, increasing costs. Setting aside a contingency fund is crucial to handle these surprises without derailing your project.
Beams gives you the costs upfront, with no surprises
At Beams we use over 4,000 pricing models to accurately quote your project with accuracy. We take into account the cost and timelines of contractors, materials and logistics.
Financing your home renovation
How do you plan to finance your renovation? It’s important you understand how you raise the money to make changes to your home. If it’s from your own pocket then you’ll want to be conscious of your savings, and if you’re borrowing money then consider what the repayment rate is, the level of interest and work out how your income or savings stack up to making those repayments.
Remortgaging
Refinancing your current mortgage to release equity from your home can provide a lump sum for renovations but might extend your mortgage term or increase monthly repayments. If it makes sense to improve your home’s value by remortgaging then this might be the best option.
Home equity loans
Borrowing against the equity you've built in your home. You’ll typically be offered lower interest rates than on personal loans due to the collateral of your home’s equity.
Credit cards
0% Interest cards: Some credit cards offer 0% interest on purchases for an introductory period, useful for smaller renovation projects. Be aware of high-interest rates once the promotional period ends.
Strategic renovation planning
Renovations typically take 6-8 weeks on average, which is no flash in the pan piece of work. Think about your daily costs as you live around the renovation. If you’re getting your kitchen redone are you going to spend more on eating out, or are you going to use a microwave in the living room? Are you going to relocate for a bit during the work? These costs many don’t consider when planning a renovation.
Whole house vs. piecemeal
Decide whether to renovate your entire home at once or tackle it room by room. Full-scale renovations can be more cost-effective in the long run due to reduced labour and cleanup costs, but require a larger upfront investment.
Living arrangements
Consider the disruption of living through renovations. Temporary accommodation can add significant costs, so plan ahead. Factor in the possibility of staying elsewhere to avoid unexpected expenses later.
Beams offers upfront timelines and costs
Managing the costs of a house renovation involves careful budgeting, planning for contingencies, exploring financing options, and strategically planning the renovation process. At Beams we take care of this, by giving you a detailed proposal which outlines all the costs and timelines and you’ll only pay the final instalment when you’re happy with the work.
If you’d like us to take the pressure of planning and organising off your hands then by all means get an estimate and chat to one of our expert planners.
If you’d like us to guide you from design to the completion of the work by our vetted contractors, then get your free estimate today:
