Having just completed a renovation in Albury, on behalf of a client who lived remotely, so needed someone to manage the process for them. I thought it was a great time to reflect and pass on some tips for all you would-be renovators that want to tackle it yourself.
1. Start with the end in mind
What I mean is in you’re renovating to sell vs renovating to put a tenant into the property at a higher rent than before vs renovating for yourself to live in, the budget, choice of fixtures and fittings and the amount of work you’ll do will vary.
In the case where you’re renovating for yourself to live in you’ll likely do a lot more than either of the two other options, simply because you intend to live there and derive the benefit from the money spent for a period of time.
Also, when renovating for sale or even for rental purposes, you need to keep in mind constantly, am I adding Kriandr more in perceived value than actual cost? Am I getting a return on my money? Knowing where to draw the line is the key.
2. Have a budget
Don’t just start renovating with no budget in mind. You need to have an idea of how much everything is going to cost and track your expenditure through the renovation to make sure you don’t run out of money.
It may be OK to leave a renovation unfinished if you’re living there (albeit not desirable) however if you’re renovating for sale or to put a tenant in, you need to finish to be able to sell/rent the property out. Running out of money half way through doing the kitchen or bathroom is a sure-fire way to land yourself in trouble.
3. How are you funding the renovation?
If you have the cash on hand that’s great, not a lot of us do but if you do it’s the easiest and simplest way to fund any renovation, you know how much you have and can pay for materials and labour as required.
If you’re using borrowed funds, make sure you understand the requirements for those funds to be released, if it’s a loan against equity it might be as simple as the funds going into an offset account until you need them. If it’s a dedicated renovation loan you may need to provide or pay invoices and to be reviewed by the bank prior to getting paid. There are a lot of different ways this can be work and you need to make sure you understand what is required to access the funds.
It’s not practical to get quotes for every single item, and in fact, in some cases getting quotes will actually make it more expensive. If the job is a small job requiring not a lot of time from a tradie, if they have to come to the site, quote it then come back and do the job you could end up paying more. Often for these smaller jobs the best course of action is to find a reputable tradesman in your local area and just book the work in to be done. As long as you understand their hourly rates and any callout fee’s.