Renovating your home or your investment property can be both exciting and challenging. Most of us think our homes could benefit from a renovation whether it’s to add comfort or to sell. No matter the scope, success lies in smart planning and preparation.
Our guide below will help you through the decision-making process and secure you with all the information you need to master a successful renovation.
Decisions, Decisions!
There are many reasons to renovate:
- You’ve thought about moving but property prices mean the best option is making your current home work for you.
- You’ve outgrown your home but love it too much and are keen to remodel.
- Needing more space for your growing family.
- You want to give your home more personality.
- You want to change one or more bedrooms in your home.
Whatever the decision, renovations of any scope — from a single room makeover to an entire house restyle can be time-consuming and stressful. But a good renovation can be life changing.
What is the purpose of your renovation?
Understanding the purpose of your renovation will allow you to make the right decisions. Be clear about why you are renovating and for every decision you make, think back to the reason for renovating — it will prevent you from over-capitalising and keep you accountable.
Different people think about renovations and remodelling for different reasons, many will have different requirements along the way, but it’s important to remember that even the little details play a huge part in decision-making and deciding on your purpose also helps you define the scope.
Costs and Budget
One of the major factors that come into play during renovations is your budget. You must keep in mind that the process is not going to be a cheap investment and you will have to be accurate in creating your estimates. There are multiple costs that you will experience, upfront, during and towards the end or after the projects and it is important to determine how to fund your home remodelling or renovation project.
Work out your maximum spend.
Overcapitalising is an easy mistake. Sit down and decide what you want to achieve, write a list of everything you could do in your renovation. Then, note whether you think they are important to have, nice to have or unnecessary to have. This will help you prioritise.
Have a realistic idea of costs.
With higher inflation, increasing logistics costs and pressure on supply, it is important to have a realistic understanding of material and labour costs. It is equally important to consider the value in relation to the costs involved. For example, when it comes to bathroom and kitchens renovation, one should consider things such as plumbing and pipework to ensure that the value of what you’re doing doesn’t outweigh the cost associated with doing it.
Break it down and prioritise.
Contact quantity surveyors or local builders to find out the average building costs per square metre in your area. If it looks like you’re stretching your budget too far, consider renovating in stages. Make a priority list and work your way through it. Break it down and once you’ve determined your spend you can designate funds to various parts of the renovation such as bathroom, kitchen, bedrooms, and exterior.
Do you really need to renovate right now?
Although it’s exciting, renovating is costly, time-consuming and can be very stressful, so before you jump straight in, decide whether now is really the best time and consider whether the expense and disruption is justified.
Will the season impact your time frame? Do you have a busy calendar or workload ahead? A whole home renovation will almost always be cheaper than moving to a bigger more expensive home, plus you have the added advantage of getting exactly what you want. If your house needs a great deal of work, take a moment to decide whether you want to go through the trouble and expense.
If there simply isn’t enough space where you’re living and no amount of change will fix that, then moving house may be the best way forward. Depending on your circumstances and decisions, it may even be better to sell and buy something more suited to your needs.
Home Value
If you’re looking to put the house up for sale after renovation, you must think critically of your ROI. Determine the current value of your home relative to other properties in your area and how much value it will have during the anticipated time of reselling after the renovations are done.
Look at the neighbourhood, development, economy, amenities and make your decisions wisely. It will make no sense to spend a million dollars on a house that will only sell for half a million. The key here is that you don’t want to spend a lot of money on remodelling the house only for your hard work and money to be flushed down the drain.
Timeframes
Planning, preparation and patience are three very important parts when it comes to a successful renovation. Because renovations always take longer than anticipated, patience is often the most challenging.
If there is a particular time of year you need or want the work to be done, establish your time frame by talking to professionals such as an architect, builder or designer and find out if your plan within your ideal timeframe is doable.
Designing and planning can take three to four months before you even get started on the building work and will often take longer if you’re living on site while work is happening. Within the industry there is a rule of thumb that if you’re occupying the property during renovation, you can except it to take 50 percent more time than if you vacated the property. Consider these options within your timeframe plan.
Council and Consents
Before deciding on any building project, you should check if it requires a building consent. Work that requires making changes to the building’s footprint or structure; decks and plumbing relocations typically require a building consent from your local council.
Yet another approval to consider irrespective of whether your project needs a building consent or not, is if a resource consent is required. You should contact your council to check this and whether there are any restrictions on what you can do with your property. Consents will cost so it’s best to find out what work doesn’t require a building consent and what you’re actually allowed to do.
Protect Your Project
Issues often pop up along the way, but you can easily manage them by being prepared.
Contingency Plans
Your contingency fund should generally be about 10-15 percent of your total budget. It’s important to make sure you set aside a portion of your budget to cover unexpected costs, such as rotten floorboards. Work out what you’ll do if things don’t go to plan — if timeframes stretch out, will you need alternative accommodation? Ask yourself these important questions.
Common Issues
Some homes are built during different decades and some have issues specific to the type of house. You can check online of various types of houses and what you should be aware of when it comes to your home. Think about potential problems when you are planning your contingency fund.
Checklist
Plan your checklist and discuss with the right people the options you have in mind for your home. Have a priority list and decide on your scope for the renovation. Talk to builders and architects for building costs in your area and to draw up renovation plans. Work out your timeframe, draw a schedule and strategy for your living plans and hire the best contractors, project managers and designers who you need to get the job done. Check construction companies online, read online reviews and do whatever you have to do to find the best. Lastly, make sure to get consents and check everything with your local council.