First, you find a builder that you feel comfortable to work with. Then you can consider the budget.
At Kelida Homes we listen, shield, guide and protect you so as to give you the best experience and the best value throughout your build. As part of our “system” we offer two options. The first being a feasibility assessment and the second is a professional prepared proposal. They both help set your budget.
1. A Feasibility Assessment is an outline of your proposed scope of works and costs.
2. A Professionally Prepared Proposal will go into much greater detail to set a more accurate budget.
Renovating your home can be an exciting venture, and with proper budgeting, it can be manageable. At Kelida Homes, we understand the importance of staying within your budget while achieving the renovation of your dreams. We suggest the following.
1. Set a Realistic Budget
The first step in any successful renovation is setting a clear and realistic budget. Start by determining how much you’re willing and able to spend, and ensure it aligns with the scope of your project. This may require professional help rather than a guess.
Tips for success:
- Research the average cost of renovations similar to your project. Be aware of the differences in quality, size and finishes.
- Speak with professionals to get an estimate of costs. Our Feasibility Assessment provides you with the information you need to “keep things real”.
- Be realistic about your financial situation and focus on what’s most important to you.
Kelida Homes Tip: Always allocate an additional 10-20% of your budget as a contingency to cover unexpected expenses, such as structural issues or change of mind variations.
2. Prioritise Your Renovation Needs
Once you’ve set a budget, prioritise the aspects of your renovation that matter most to you. Consider what will add the most value to your home and lifestyle. For example, you might prioritise a kitchen remodel over outdoor landscaping if your goal is to enhance daily functionality. By focusing on key areas, you can ensure that your budget is used wisely and you’re not overspending on non-essential elements.
Tips for success:
- Create a list of “must-haves” and “nice-to-haves.”
- Be flexible with non-essential features that can be added later.
- Consider energy-efficient upgrades that offer long-term savings.
Kelida Homes Tip: Work with your contractor to identify cost-effective alternatives that still meet your design goals, such as using high-quality materials in key areas while opting for budget-friendly finishes elsewhere.
3. Plan for Hidden Costs
Even with the most detailed planning, unexpected costs can arise during a renovation. Common hidden expenses include structural issues, delays, permit fees, or needing to replace outdated plumbing or electrical systems. By preparing for these surprises in your initial budget, you’ll be better equipped to handle them without derailing your entire renovation.
Tips for success:
- Check if your renovation requires council permits or approvals, which can add to your costs.
- Factor in temporary living arrangements if your renovation requires you to leave your home.
- Keep track of all expenses to stay within your overall budget. HINT, changes cost time and money.
Kelida Homes Tip: Always have a buffer in place (around 10-20%) to cover hidden costs. This way, you’re not scrambling for extra funds if something unexpected arises during the renovation. It is not uncommon for the banks to be hesitant to lend more at short notice.
4. Consider Financing Options
If your renovation is more extensive than your savings allow, you may need to explore financing options. There are several ways to finance your renovation, including home equity loans, refinancing, personal loans, or even using your offset account if you have a mortgage. Each option comes with different interest rates and terms, so it’s important to choose the one that best suits your financial situation.
Tips for success:
- Speak to your bank or financial advisor to explore financing options.
- Ensure that your loan repayments are manageable within your budget.
- Factor loan repayments into your overall renovation costs to avoid overextending yourself.
Kelida Homes Tip: Kelida Homes is familiar with most bank processes and procedures, however, we do not offer any financial advice.
Budgeting for your renovation doesn’t have to be stressful. By setting a realistic budget, prioritising your needs, planning for hidden costs, and considering financing options, you can ensure your project stays on track. At Kelida Homes, we guide our clients through every step of the process, from budgeting to completion, ensuring that your dream renovation is both beautiful and within reach.
Ready to start your renovation journey?
Contact Kelida Homes today for expert advice and tailored solutions.
Kelida Homes Tip: Be wary of contractors who are offering significantly lower prices — ‘what are you not being told’, have some costs been left out or strategically hidden.
Choose a trusted professional who will deliver value without compromising on quality.
