Home renovating is part of the great Australian dream. It’s not just about home ownership, but transforming a house into the kind of home you’re proud to live in. In addition, many Aussies choose to renovate their homes before putting them on the market, to attract a higher price on the sale.
If you’re planning to renovate, there are some things you’ll want to consider so the process runs smoothly, and so you have enough capital to successfully complete the project as seamlessly as possible. Read this home improvement guide to find out how.
#1 – Step One Is To Formulate a Plan
You shouldn’t even consider getting started on your home renovations until you’ve mapped out what you want to accomplish and some time frames for completion of each phase.
As you work on your plan, everything will become much clearer. The picture of what you want to achieve will be clarified and you’ll no doubt dream up some new ideas as the plan starts to take shape.
A good plan will include things like:
- Which rooms you want to renovate
- Materials required
- Where to source materials
- Hiring tradespeople
- Approval from local authorities
- Your budget
Your plan will likely always be evolving as you undertake your renovations, but strive to make your plan as complete as possible before commencing work.
#2 – Work Out a Budget For Your Renovation Project
This part of your renovation plan is just as important as any other aspect. Obviously, your home renovation is going to cost money every step of the way, so it’s a good idea to determine how much you’re likely going to have to spend before you even think about breaking out the tools.
You may not be able to come up with accurate figures for everything involved. Some parts of the budget will likely be guesstimates. However, put a solid price tag on as much as possible.
Your budget may also evolve over time as your renovation project comes into clearer focus. Add up the total cost, then add at least 10% to that total to cover any unexpected expenses, or in case you’ve underestimated some parts of the project.
If the final total is much higher than you anticipated, look for areas where you can trim back on expenses.
#3 – Organise Your Tradies In Advance
First, seek out tradespeople that have a reputation for being reliable and fair with pricing. Personal recommendations from people you know is one of the most effective ways of finding reliable workers.
You’ll want to book these tradies in advance to ensure they are available to do the work when you require them on-site. While DIY renovators can certainly accomplish some tasks themselves, there are certain tasks that you won’t be allowed to do; such as electrical and plumbing work. Not unless you’re licensed in these fields yourself.
To ensure you have the help when you need it, source tradies and book them in as part of your initial plan.
#4 – Finding the Money To Cover Costs
There are always ways to come up with cash if you don’t have all the money you need right from the start. The time-consuming method would be to save up for each stage of the renovation. Alternatively, if you have equity built up in your home, you could borrow against it.
A more popular option is a renovation loan for your home. This is one of the fastest ways to get your hands on the money you need for completing home improvements. They are a type of unsecured Personal Loan, which means you don’t need to offer any type of security on your loan. You don’t even have to view the loan as a debt, as any improvements you make to your home will generally be adding value to it should you decide to sell.
Most Australian lenders will offer loans designed for home improvements, so shop around for a deal that suits you. If you’re unsure of which way to go when it comes to raising the money, talk to your accountant or financial advisor and get some advice first.
The more you plan your home renovations, the easier (and cheaper) the entire process will prove to be.
If you’re seeking a loan to perform home improvements, have a chat with the specialists at Cashify. Just send us a message and we’ll answer any questions you may have.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.