Whether it’s a few cosmetic touches or a series of major structural alterations, there’s nothing like a renovation project to refresh your property. Yet while the dream may be enticing and the final outcome tempting, there are a number of pitfalls that can quickly turn the project into a nightmare when it comes to the budget. With accepted estimates of suitable renovation budgets running at anything up to 5% of the purchase price of the property, it’s vital to keep a firm grip on the costs of materials, labour and installation in order to avoid costs spiralling out of control. And while it’s tempting to include a few luxury items, it’s also critical to be realistic about what you can achieve with the budget you have available.

Don't know where to start to keep your budget on track? Here are our top tips that should make your renovation go that much smoother financially.

9 Best tips for keeping your renovation budget on track

  1. Understand your objectives – be clear about what you want to achieve, and why

  2. Focus on planning – break the project down into achievable milestones

  3. Draw up a schedule – an accurate schedule with a clear deadline for completion is essential

  4. Agree on a realistic specification – avoid the temptation to splurge on luxury items that only add vanity value

  5. Stick to the plan – changing your mind during the project is guaranteed to blow the budget

  6. Avoid creep – allowing the project to grow as it progresses can cause the budget to escalate and the schedule to overrun

  7. Manage your finances – whether you’re funding the renovation from savings or borrowing to meet the costs, you’ll need to ensure that you can meet the agreed payment schedule

  8. Add a contingency – in an ideal world every project would run precisely to budget and time, but in reality that rarely happens. It’s good practice, therefore, to include a contingency – possibly around 15% of the total budget – to cater for unforeseens that may arise

  9. Expect the unexpected – with even the most meticulous planning there is still the chance that something unexpected will occur, especially during a major renovation, so it’s helpful to be prepared to be flexible in finding a solution that works within your budget

 

Find out more

For more inspiration on how you can achieve a quality renovation within your budget, check out these projects or get in touch to book in a free one-hour consultation.

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