Whether you’re renovating to maximise the value of an investment property or you simply want to change up your own living space, the costs can easily spiral out of control. It’s no secret that renovations equal time, effort and money. Done successfully, they can dramatically improve the value of a house, but planned poorly and they can be a time consuming, financial disaster. With that said, here’s the best ways you can save on a renovation.
Before you lay a finger on a hammer, or think about what paint colour would complement that sideboard, it’s critical that you know how much money you can afford to put into a renovation.
How much you need will come down to a variety of factors, including how big your renovation will be, what area of the house, what materials are used and who is doing the work. Think about what you need above all else. Factor the important things first and then add any additional pieces which you can afford after. This helps ensure your budget doesn’t blowout with unnecessary purchases.
There’s many ways you can fund your renovation, small jobs can be funded simply from savings, while bigger jobs could be funded through your home’s equity, for example. This can work for either your own home or an investment property.
One way you could look to make savings is by finding a home loan with a lower interest rate. Refinancing your home loan to a lower interest rate will lower your mortgage repayments, helping you to save the difference. You can compare home loan rates and compare mortgage repayments through sites like RateCity.
Create a detailed budget and prioritise
Once you know how much money you’ve got to work with, create a budget that details exactly where every cent is going. To do this effectively you will need to do lots of research.
Some items are cheaper and easier fix than others. Go through your house or rooms you are renovating and prioritise what must be fixed. Even a fresh coat of paint can make a huge difference in a room, and is much cheaper than knocking out a wall or installing a new bathroom vanity.
Be selective with what you do
Yes, you have prioritised what things are in most need of a renovation, but it’s also important to think about whether you should DIY or get a professional in.
For certain things, like plumbing, electricity and gas fittings, you are required by law to get a professional to do the work. The requirements vary between states so it’s important you abide by the regulations.
Other things like painting, tearing out old furniture and tiling may take some consideration. Work done by professionals will understandably look more professional, but this is where the real savings can be made. A professional painter employed to paint the entirety of a house can cost thousands of dollars, but if you were to do it yourself it would be very time consuming, and you run the risk of making rookie mistakes.
You need to work out how much time you personally want to invest against how much money you want to invest, and also consider the end result. Are the savings worth you doing the job, or will paying a professional work out better?
Research material options
Once you’ve got your budget and have worked out who is doing what, you can begin selecting your materials. This is where your costs can move dramatically.
Your first step is to assess what needs to be of high quality and what can be from cheaper materials. Surrendering high grade materials doesn’t mean you have to settle for downgraded aesthetics. You can drop down to the lower price range and find similar looking materials which will give a comparable visual effect for a much lower price. It’s all about shopping around.
Another great tip is to reuse or refurbish old things from your home. Sure, that flat-pack kitchen bench might have to go, but perhaps you can reuse it for shelving or a bench in a different room. Look for these opportunities and get creative.
Similarly, you can find materials and furniture for reduced prices if you know where to look. Second hand goods are constantly sold on sites like eBay and Gumtree and will be drastically cheaper.
You can also find savings in factory seconds or end of line floor stock. Generally, these items will have some material damage, but you could repair the damage or cover it up. For example, scuffs on floor boards can be easily hidden with a rug. Every cent counts!