Investing in a house or any real estate property may be one of the biggest decisions that you have ever made. This is generally true especially if you have more freedom to update, improve or redesign your home property asset, where you can have the opportunity to not just achieve your aesthetic goals, but to also add value to your home.
There will come a time when you may need to consider renovating your home for a couple of reasons, such as planning to sell or just want to have a change of scenery. At first, it may feel a bit intimidating on several aspects such as cost, time, and effort, which requires a huge commitment.
However, with proper and careful planning you just might be able to successfully and satisfactorily complete a renovation project without having too much trouble on your hands.
Aside from ensuring the aesthetics, stability, and condition of your home, you get to have the personal satisfaction of overcoming the challenges of home renovating.
Here are some very practical and important tips in wisely planning and budgeting a home renovation.
Start with a general inspection
It all starts with a thorough inspection of your house and property, particularly in areas you feel may need more attention or where it shows wear and tear. As much as possible take photos of sections needing improvement or repair so you can visually asses trouble spots a bit more when assessing your proposed renovation project.
Set your priorities
Identify your target areas and list down the areas needing improvement the most, which can help you evaluate your options in terms of time, cost, and labor.
Set a budget
It is always important to be realistic about your budget and ensure that you can afford to spend for it relative to your income or cash flow. The beauty with budgeting is that you have a good idea of how you may be able to program your renovations systematically.
Make sure that you only spend for what you can afford. There may be times where you may have to overspend a bit due to unplanned incidentals, so make sure that you set a certain amount to factor this in.
Break down the costs
Before you even start spending after setting a budget, go back to your target areas for repairs or renovation. Make a list of the materials and labor components of your renovation project. This will give you an idea of how you can apportion and monitor your spending.
Itemise and break down each component of your project so you can see an image of the project in progress, so you may be able to prepare and have control over your renovation project.
Determine your end goal
Going through a renovation project can get you carried away easily and could cause you to overdo your project which you may not have initially planned for.
Make sure that you have an end-goal clearly set for your project and make sure that you stick to it. This can likely often if you plan to flip a house if you are intending to sell it for a higher value in the future.
While it may be a good plan to consider, you also have to factor in your budget which must be within your tolerable limits.
Should you consider taking out a loan to fund the renovation project beyond your budget, seriously consider your ability to pay and layout your plans for your property before making rash decisions without thinking things through.
Always be realistic
Stick to what you can manage and do your best to no go overboard in terms of cost and time options. Always weigh the pros and cons of a renovation project, especially when weighing in your finances so you can achieve the best financial returns.
For instance, instead of spending on landscaping, you may consider prioritising the renovation of the kitchen or bathroom, which can add more value to your home. If you are looking to invest in leisure and enjoyment without expecting monetary revenue, then a pool or spa could provide you with the recreational aspects of your project.
Spend your money wisely
It is best to know where you can spend more or save money on your renovation project. Generally, it is acceptable to never sacrifice on the general layout of your home. Focus on a well-designed physical space since this cannot be easily changed once it has been done lest it could cost you more to make changes in the last minute.
Channel your investments on permanent fixtures and structures that can help you save money in the long run, such as flooring, woodworks, countertops, etc. These can help you same money in the long run.
You can also consider saving money on premium items such as lighting fixtures, furniture, or home appliances. These items often lose a lot of value over time and could lose functionality over time.
You may consider investing in design or home components that could maximise natural light in your house and save up on power usage during the daytime.
It is always important to know how you spend your money and face the realities of considering home renovation projects when the need arises. Rather than be intimidated by the prospect, knowing what to do, how to plan, and how to spend for it may even make it more fun and exciting.