Renovation costs – Plan your budget

Date: 12/01/2014

Renovation costs – Planning tips to stay on budget

Whether you have recently purchased investment property or you have a new tenant moving in, every so often you need to upgrade your dwelling and carry out renovations.

The trouble with refurbishments however, is that they can become quite costly and get out of control fast.

If you’re not careful with renovation costs, it is quite easy to get carried away which can result in overspending and diminished profits.

To keep to your budgeted renovation costs, follow these planning tips…

1) Get organised.

Make a list of what needs to be done, how you are going to do it and make realistic estimates of what it is going to cost – and then stick to it!

It can be all too easy to start in on one thing, only to notice something else that could be done and carry on and on until you are out of time and out of money.

As a general rule of thumb, you should only spend a small percentage of your purchase price on renovations. Determine a number – including your wiggling room – and then map out your spending plan.

2) Spend money in the right places.

Funding your renovation project is a fine balance between being frugal and being cheap. Do not skimp out on your materials – buying quality supplies for the fundamentals of your project will pay off in the long run.

This does not mean choosing the most expensive brand out there – just something good enough to achieve your desired look and stand the test of time.

On the other hand, do not go overboard on finishings or completely overhaul room fixtures unnecessarily.

Reuse what you can and add a lick of paint or other rejuvenation techniques to make the most of what is already there.

3) Measure twice and cut once.

The best laid plans can be foiled with one mistake. Take extra care to hire the right people and check – and double check – all details before any work begins.

Caution in the beginning can save you a lot of headaches – and money – down the road.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.