Knowing Where To Spend During A Renovation
21 / 08 / 2019
Renovations are something that’ll probably come up in your home’s life at one point or another. It can be a fun and exciting time – out with the old and in with the new! But it can also become a black hole for your funds if you aren’t careful. That’s where the trusted quantity surveyors at Section 94 come in. A quantity surveyor will assess your renovation project and give you a realistic number regarding the cost involved. But there are other things you can do to proactively and efficiently maximise your expenditure when renovating – and that’s exactly what we’ll be discussing in today’s blog!
It’s often mentioned that for renovations, you should spend no more than between 5 – 10% of the property’s total value. This is to avoid over-capitalising and spending more than what you may one day sell it for. You also need to consider whether you’ll be undergoing a structural renovation – that is, a renovation that involves altering the structure of the home – or simply a cosmetic renovation.
Also, consider how likely it is that you’ll be undergoing future renovations and what size they’ll be. You don’t want to pour your entire budget into this renovation if you’re planning on undergoing a future one.
Are you renovating to sell or for yourself?
If you’re planning a renovation with the intent to sell the property, then you’ll want to take a different approach to things. Updating features such as benchtops or adding stylish carpet to the property will boost your sale price. You’ll want to aim towards making the property look as fresh and as trendy as possible – allowing it a chance on the competitive housing market. Here’s the catch though: if you’re looking to sell, you don’t want to put too much into it.
Don’t get the best of the best in kitchen appliances – for example – but install well-functioning appliances that look the part. Ensure that there’s an even spread of aesthetics and functionality at an affordable price for yourself that won’t take much away from your possible selling price. Remember, you’re trying to sell the house – literally and figuratively.
This mentality changes, though, if you’re renovating for yourself. Whilst you should still try not to go overboard, there are some areas where this can be acceptable. As all the renovations will be based on your personal preferences, you may want to spend a bit extra in certain areas that you know you’ll benefit from. We’ll use the example of the kitchen again. If you enjoy cooking and you know you’ll get a lot of use out of your cooktop, then spending a bit more money there would be a smart choice for you.
Analyse and compare quotes
Be sure to study the quotes you receive from various contractors. Request an itemised quote so you can clearly see what your money is going towards. Don’t wait too long if you’re shopping around either, as some quotes may only be valid for a certain amount of time. The last thing you want is a quote to expire – especially if you realise that it was the best one you had. Don’t just look at the cost of all of them, but take note of other details (such as timeframe) as well.
The cheapest quote may take a lot longer to complete – which may or may not be a problem for you. Also, if you can, keep an eye out for the quality of products being used – especially if you’re going for a structural renovation – as you don’t want your contractors to use cheaper, less-reliable materials just to cut costs. Consider all aspects – you may find that you can cut costs by going with a contractor with a longer timeframe in mind as you don’t have a deadline.
Are you planning to renovate your home?
Whether you’re planning on renovating your home to sell or to further enjoy yourself, you’ll want to enlist the services of a quantity surveyor. Section 94 is a team of fully qualified and licenced quantity surveyors who can help accurately estimate what you should be paying for your renovations – ensuring you’re not paying more than you should be. Section 94 also offers a variety of other services, including bank prefunding, construction budgets and progress claims.