How To Set A Realistic Home Renovation Budget

A renovation is likely to spark all the emotions; excitement, anticipation and happiness. However, on the same strain, feelings of anxiety, stress and overwhelm are also common. Being a monumental task, the financial side of things can sometimes be hard to wrap up into an attractive figure. Losing sight of your budget because of variable changes is a problem most renovators will face. To combat this, here are some of our best tips to make sure your home renovation budget is as concrete and realistic as can be!

home renovation budget

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Separate Needs From Wants
Typically, a realistic home renovation budget is around 5% of the purchase price for the property– although this will vary greatly depending on the scale of your renovation budget. Before sitting down and scoping out your budget, first, make a list of all the projects you wish to complete. Realistically, your budget may not cover everything you have listed. There will most likely be areas where cutting costs are required. Prioritising the reconstruction/ remodel of your home’s structure is important as well as placing emphasis on high traffic areas of the home, such as bathrooms and kitchen. Even though a $500 gold cushion may seem like a good investment, the major refurbishments needed to keep your home practical will best pay off.

Be Realistic
It’s easier said than done to keep a realistic mindset when renovating. The excitement of trawling through the internet for inspiration can often warp our sense of practicality. This can trick us into thinking our budget is larger than it actually is. Some people, however, are on the opposite end of the spectrum and set their initial budget way too low. They think they can cut corners doing projects themselves rather than seeking professional help. The first way to combat this to be truthful with yourself from the get-go. Remember, the whole point of having a home renovation budget is to feel prepared! If you work out realistic figures and decide those numbers are too expensive, you can always hold off on the renovation while you save up enough money.

Take The Time To Make A Plan – And Stick To It!
Too often, the excitement of a renovation will mean that people jump into remodelling headfirst without a solid plan in place. While spontaneity can be good, in a renovation sense it is a sure-fire way to blow your home renovation budget. If you’re the type of person who is known to be indecisive and swayed easily by trends, then map out design ideas and shortlist your choices. This decrease the chances of you changing your mind mid reno and spending money you never accounted for.

home renovation budget

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Have A Buffer
While budgeting is important – and vital, it is important to remember that renovation projects are extremely variable. Sometimes, no matter the plan, your final figure may change due to unforeseen circumstances and problems out of your control. Having a 10% buffer locked into your budget as a safety net is a smart move. This will help take away the stress if you are met with extra costs.

Don’t Forget Taxes And Shipping
If you plan to use online shopping as a primary tool in your renovation purchasing, then don’t forget the additional costs of shipping! This is something that is very easy to do and will often go unnoticed by homeowners. When scoping out your original budget, be realistic when considering these extra costs. Leave room for delivery prices and fees as well as additional taxes.

Thinking of starting your own renovation project? Our team at iBuildNew can help you! Contact us on 1300 943 640 or customerservice@ibuildnew.com.au for free assistance in finding a builder.

Breanna Taylor

Breanna Taylor is a third-year journalism and PR student studying at Swinburne University in Hawthorn. She has a strong passion for interior design and a growing interest in property development and renovation.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

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