If you are considering purchasing a home that needs to be renovated then you will have to be prepared to consider the renovation costs. Renovating a small property can be costly and a large scale home renovation can be extremely time consuming and very expensive. When planning any renovation project you have to consider time, the cost of materials, the overall cost of labor and the conditions of the local housing market.
Naturally you will want to maximize your investment so you need to set a realistic budget that covers all costs. In the first instance you will need to consider the type of renovation you expect to carry out, are you going to do a home make-over or are you refurbishing major areas such as the kitchen or the bathroom? If you need to purchase new kitchen units or a brand new bathroom suite then you will have to consider the costs. These areas tend to be some of the most expensive areas of a home renovate.
It is also wise to have a backup budget. A contingency fund can help you cover unexpected costs. We usually estimate at least 10% of the overall renovation budget as a contingency. While you never want to use it, you often will especially if you are new to home renovations. This number should increase if you have a house that is older than 60-70 years. The older a house the more likely it is to have out of date materials, and the more likely you will need to invest a significant amount of time and money to fix those out of date items. Brining old homes up to code however is a must do and should never be skipped to save money. The reason we have code is to protect you and your family in your home and the last thing you want to do is put them at risk just to save a few bucks.
One last way to save money is to combine work together. If you know that something is going to need to be renovated in the future, you can save on overall renovation costs by combining them together. This combination creates economies of scale and allows you to get more work done for less cost per action. Keep this in mind when you are planning out a renovation. If you aren’t sure then go inside the house and look at one room at a time and make note of what needs to be done. Once you have a list of everything you will have a better idea of how to proceed.