The idea of transforming a dilapidated house into a dream home can seem very appealing to those on a budget.
While renovating a home can be a more affordable way to own the perfect home, homeowners will need to keep a close eye on the budget to ensure the project doesn’t break the bank.
Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, says it is very easy to overspend when undertaking renovations, but homeowners need to be careful to avoid overspending.
With interest rates being so high, homeowners are not advised to take out additional credit if it can be avoided. It is also important to stick to a budget to avoid the risk of overcapitalizing the investment.
To help homeowners stay on budget, RE/MAX of Southern Africa shares the following tips for a stress-free renovation:
Tackle one room at a time
The last thing a homeowner wants is to run out of money and be forced to live in an unfinished home. By tackling just one room, if things end up costing more than you expected, you can always finish the room and tackle the rest of the rooms later, once you have saved a little more money.
Establish a realistic budget from the start
Before you start any work, do some research to get an idea of how much it will cost. Shop around to find materials or suppliers that fit your budget. Remember to leave a 10% margin on all costs to leave room for unexpected costs, like delivery or installation fees or even emergency repairs when old features are removed.
Have alternative options lined up
During your research, if you discover that installing new flooring or replacing countertops will cost more of your budget than you originally anticipated, then it may be necessary to re-evaluate the scope of the project.
Take a look around the room and decide what could stay as is and what absolutely needs to be replaced. Sometimes you can get away with spending a small amount of money to refurbish certain features instead of outright replacing them. Other times, you may need to go with the cheaper option. For example, if quartz countertops are too expensive, it may be worth exploring the cost of melamine alternatives.
The key to sticking to a budget is to be flexible and adaptable to the situation as it evolves.
To ensure you avoid overcapitalization, Goslett recommends speaking with a local real estate professional who can tell you about recent sales prices in the area.
“Armed with this information, homeowners can then determine how much they should spend to avoid putting more money into the home than they can get out of it,” he concluded.
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