Updating your home on a budget

When every day of your working life is dedicated to assisting property owners to make the most of their investment in their own home, it becomes quite clear fairly quickly that 99% of Australian home owners take a great deal of pride in their own home.

Home renovations can be dangerous

As part of this focus, it’s fair to say that most of us are keen to make our home look as stylish and comfortable as we can whilst we live in it. What has become clear in recent years, however, (particularly with the growth in popularity of all the ‘reality TV shows’ that focus on home improvement and styling), is that there is a real temptation for some home owners to try to set the bar too high in upgrading their home and end up doing real damage to their financial position in the process.

Eight home improvement tips to protect your budget

Whilst every situation and every property is different, here’s some timely tips to consider before you jump in the car and head to Bunnings:

1. First and foremost, set a budget at the START, not half way through.
2. Don’t forget to include added costs such as permits if applicable.
3. Add 20% to everything because there are always unexpected contingencies.
4. Once you set a budget, monitor it at each step to ensure you stay on track.
5. If your budget won’t achieve your goal, reset your goal from the start. If you make cuts half way through, the end result will never be what you hoped for.
6. Ask yourself, is this project going to fit your plans for 5 years from now?
7. If it won’t, will you have the budget to re-do it all within that time frame?
8. Always aim for quality on a smaller scale rather than cheap on a large scale. Quality lasts.

Last but not least, make sure you seek out plenty of experienced advice before you start, particularly if you are not an experienced renovator. Remember, the TV programs always make it seem easier than it is!

Avoiding costly mistakes

Overcapitalisation and inappropriate renovations are just two mistakes that can affect your sale. So, if you’d like to avoid making other mistakes when you sell, you can obtain a FREE copy of our booklet, Fatal Real Estate Traps Exposed, while you’re here on our website.

(Photo credit: The Block)