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While planning a home renovation is exciting, managing the budget can often feel daunting. Fortunately, with preparation and clear goals, you can keep your costs under control and avoid surprises.
Here’s how to plan your renovation budget with confidence.
Understand your renovation goals
The first step in budgeting for your renovation is defining your goals. What exactly do you want to achieve with this renovation? Are you looking to simple update the decor, add functionality or increase value for resale purposes?
Knowing what you want to achieve will help you focus on the areas that need the most attention. Whether you’re renovating a kitchen, bathroom or an entire home, make a list of must-haves and nice-to-haves. This will help you prioritise spending and avoid unnecessary costs.
Consider what you can do yourself
One way to reduce costs is by tackling parts of the project yourself. Even if you don't feel confident completing the entire project yourself, you might be able to assist with preparation or finishing work, like removing old fixtures or painting. Preparing the site before trades arrive and completing basic tasks afterward can significantly reduce the number of hours professionals spend on-site, leading to potential savings. Just make sure to discuss with your tradesperson what prep and post-work you can safely do to cut costs without compromising the project's quality.
Remember the Bunnings website has a comprehensive How To section with step-by-step guides for a wide range of home improvement tasks, as does the Bunnings Workshop site. You are also always welcome to ask a question here on Workshop if you need a hand.
Research and get multiple quotes
Before starting any work, gather several quotes from contractors, suppliers and designers. This will give you a good understanding of what each element of the renovation will cost and help you avoid any surprises.
Be sure to compare quotes for materials, labour and other costs, and always check for hidden fees or additional charges. When you receive the quotes, ask detailed questions about what’s included and whether the price is firm. Doing your research and getting several quotes will help you find the best deals and ensure you’re not overpaying.
Establish a feasible budget
Once you have a clear understanding of your goals and expected costs, it’s time to set a realistic budget. Take a close look at your finances and determine how much you’re willing and able to spend on the renovation.
Keep in mind that home renovations often come with unexpected costs. It’s important to include a contingency fund for unexpected expenses. Typically this is 10-20% of your total budget. Avoid overestimating your budget. Aim for a figure that balances your renovation aspirations with your financial capabilities.
Break down your budget into categories
To effectively manage your renovation costs, divide your budget into specific categories. Common categories include materials, labour, permits, appliances and professional services like architectural design or engineering. Allocate specific amounts to each category based on the quotes you’ve received and your overall budget.
It’s helpful to use a spreadsheet or budgeting app to track your spending and update it regularly throughout the renovation process. By categorising your expenses, you’ll have a clearer picture of where your money is going and be able to adjust as needed.
Plan for the unexpected
Renovators can encounter unforeseen challenges, leading to delays and extra costs. Issues like structural, plumbing or electrical problems or supply chain delays can result in higher expenses. Material shortages, weather or contractor availability might result in additional costs like temporary accommodation or extra labour. Ensure your budget has flexibility, discuss realistic timelines with your contractor, and allow for delays.
Don’t forget permits and fees
Depending on the type of renovation you’re undertaking, you may need to obtain permits or pay for inspections. It’s important to factor in these costs when planning your renovation budget.
Failing to get the necessary permits can result in fines or having to redo work that wasn’t approved. Check with your local council or a building professional to ensure you’re compliant with regulations.
Make smart choices about materials
The materials you choose for your renovation will have a significant impact on your budget. High-end materials can be expensive, while more affordable alternatives could still provide a similar look and feel. Try to strike a balance between quality and cost.
If working with a tight budget, consider mid-range materials for items like flooring, cabinetry and fixtures.
Track expenses throughout the renovation
Once the renovation starts, it’s essential to monitor your spending regularly to ensure you stay within your budget. Keep track of all receipts and invoices and update your budget as expenses arise.
Tracking your spending helps you identify any discrepancies early so you can make adjustments before costs get out of hand. If you notice you’re spending more in one category than anticipated, consider cutting back on another or renegotiating with contractors to ensure you don’t exceed your budget.
For further planning assistance, check out these helpful guides: How to plan a kitchen renovation, How to plan a bathroom renovation, How to plan a laundry renovation and How to plan a garden makeover.
