Managing the mortgage and home renovation
We all want great houses but beautiful and functional homes don’t always come cheap.
Often, it’s stressful just to think about buying a new house and renovating it.
However, it doesn’t always have to be hard. Here are some tips on how you can manage to afford a renovation on top of your mortgage.
Plan your renovation budget
A renovation can be ten thousand dollars, or three hundred thousand dollars.
It may be as simple as renovating your kitchen, bathroom or one or two rooms. Or, you can go for a complete overhaul and add another level or do an extension.
Combined with the burden of a mortgage, you’d really need to assess how far to take your renovation and what you can afford.
This is perhaps the most important part of your planning process.
Take the time and do your homework
For instance, get comparative trade quotes, create a budget and set a timelines for getting it done.
Consider these steps:
1. Outline the work needed for the renovation. Plan the design, fixtures to install and other components you want fixed or added. You can estimate the costs better if you have a detailed plan.
2. Come up with a cost overview of the entire project. This is where your plan will be useful. If you have outlined all the fixtures, work and labour needed then you can come up with an overview of the costs associated with each.
3. Put together a realistic budget. Know what you can afford. There’s no point in pushing for a renovation you cannot pay for. Set aside a portion of your income for mortgage, basic needs, emergency then see how much more you can spend for added costs like renovations.
Consider a contingency for about 10-15% for unexpected expenses. This allows you to see if you can still manage your renovation with a mortgage. And at the same time, it provides you with a safety net just in case costs spill out.
Planning a renovation? who do you call?
The Tradebusters free tradie concierge service can help you from start to end.
Our team has been using the same trusted tradesmen like builders, painters, electricians, plumbers, bathroom and kitchen renovators meaning we can save you time, risk and money.
To get started, you can tell us about your job right here or call 1300 TBUSTERS (828 783).