Having a spruced-up home feels great. And it can also boost your home’s value. But, as exciting as the prospect of rolling up your sleeves and getting on with a renovation can be, there are certainly pitfalls to avoid—and these often involve the renovation cost.
New year, new you, new reno?
Renovating is exciting. Having aesthetics and function on point can make your home feel new again. And possibly add to its value should you want to sell or refinance.
But we’ve all heard reno horror stories: flaky tradies, budget blowouts and permit nightmares, not to mention the recent supply chain disruptions.
So we’ve compiled some tips to help you steer clear of these potholes (and associated headaches!).
How to tackle the renovation cost and pitfalls
1. Prepare and plan
As Benjamin Franklin said, “if you fail to plan you’re planning to fail”. Bit harsh, but it rings true. Especially for a renovation.
It’s a good idea to keep organised with a to-do list and a timeline of when you need things done. Keep close to your contractor so you can be alerted on updates and changes.
You’ll need to check for council restrictions and permit requirements. Ignoring this could mean hefty fines. Or having to tear down your hard work (it does happen!).
Contracts should be set in place with tradies, the correct materials purchased, and a budget set … you’ll have a lot on your plate.
2. Research tradies
It’s a no-brainer that a reputable and skilled builder will most likely provide better outcomes. But they usually come with a higher price tag.
The temptation to hire that cheap as chips mate of a mate is real.
But it’s important to hire licenced tradies and research builder hourly costs. Most state fair trading websites offer a free online service for you to check.
Not doing so runs the risk of fines, shoddy work and costly re-dos. And the work of an unlicenced tradie most likely won’t be covered by insurance.
Also, be sure to check out any reviews and examples of their work.
3. Budget and a buffer
Having a budget is an important step. You need to be realistic about how much your project is going to cost and whether you can afford it.
It’s also wise to have a contingency.
Unexpected costs can really add up – just ask anyone who has completed a renovation. Being prepared with a financial buffer can give you peace of mind to forge ahead in the face of surprises.
Also, having a broker like us on your side can help make funding your reno more straightforward.
Soho Home Loans can help you explore your financing options, which might include unlocking the equity in your home to fund your reno or any added costs.
Not only can we help you find a competitive rate. We can also track down flexible loans, such as a line of credit, to help cover any unforeseen costs that crop up.
4. Be flexible
To get a reno done, it’s best to be flexible.
It’s not unheard of to uncover issues during a reno – such as structural problems, water damage, asbestos and faulty wiring – which require you to deviate from your original plans and budget and if left unfixed, can be super dangerous.
The building industry is also facing supply chain disruption due to recent world events, including the COVID-19 pandemic and the war in Ukraine.
As a result, wait times and costs are blowing out for some materials and so a specific item you had your heart set on may need to be replaced with an alternative.
But by being flexible – including having a flexible line of credit – you can adapt and move forward with your reno.
Get in touch with Soho Home Loans
We know a thing or two about financing a renovation.
Our team can find flexible loan options, lines of credit and competitive rates to suit you. And if you’ve got equity in your home, we can help you unlock it.
So if you’d like to find out more, get in touch today. We’re ready to help make your 2024 reno dreams a reality.
Looking for more renovation cost tips?
With the help of our reno guide, we hope you can make a more informed decision on your loan. But feel free to check out our property finance section as well as our home decor articles for more guides and tips.
