Starting a renovation project can be a rewarding exercise as it can improve the quality of your day-to-day life and help increase the value of your home.
Whether you’re thinking of renovation to simply fix something that is broken or maybe to develop your sense of DIY-mastery, seeing a renovation project through to completion will give you a real sense of personal achievement.
Here we’ve tackled the three most common questions home renovators ask themselves before starting out:
1. Where do I start?
The first thing you need to do is decide on the scope of your renovation. For instance, are you thinking of tearing down a wall? If so - will it require an expensive electrical work or plumbing to complete it? How long will the whole project take, and are you comfortable with that time period?
Next, think about what future buyers might like and what will increase the value of your home (in case you want to sell later on). Talk to real estate agents and do your research about what’s popular in the local area – for example; a renovated outdoor area might worth more in a suburb that’s popular with families.
Internal renovations like a kitchen or bedroom may not need a council approval, but strict rules and regulations often apply to outdoor projects like a deck or extension so get all the necessary council approvals before you begin.
2. How do I budget?
After thinking about the scope, write a list of everything you think you’ll need - big and small. As a general rule, interior design expert from Hotspace consultants suggest that you should start with a complete renovation budget – as if you were doing the whole house up - that sets your total numbers at 8-10% on the median range of a house in your area and adjust according to the desirability of your suburb.
Factor in all the tools that you may need like drills and sanders and consider big-ticket items like cabinets, benchtops and kickboards, to name a few. Research the prices of every thing you will need and then include these in your total budget.
Next is to get quotes from tradespeople which should include a breakdown of labour and materials. Being sure to consult a few so you get an idea of what’s reasonable and what you might be able to save by buying some of the materials yourself.
Finally, add a buffer onto your budget for anything unexpected. DIY project costs can often blow out, so it’s good to be prepared. Follow this easy 5-step process to work out your renovation budget.
3. Can I borrow money for home improvements?
There are good options available when it comes to financing home renovations:
- You can apply for a personal loan to get your projects underway but get professional advice to make sure that this is the best financing option for you to achieve your goals. Ask your Lender these 5 essential questions before you decide to apply for the loan
- Refinancing is also an option If you have enough equity in your home. It’s good to get a valuation every so often to find out how much equity you have, and use that money to fund improvements that are likely to give you a strong capital gain.
- If the first two options don’t suit your situation, don’t despair. Completing one stage at a time then saving up for the next may be the best way to go. Alternatively there are plenty of ways you can DIY to give your property a great makeover!
Renovations aren’t always easy – they take a lot of planning and thought, but they can be exciting and come with the possibility of great rewards – emotional or financial. If you need help with your renovation project, Pepper Money renovation loans could be an option. Our loan amounts start from $5,000, which can be a good start to help boost your existing renovation budget.
When you’re ready to embark on that home improvement project, find out how much your individual rate and repayments might be on a Pepper Money personal loan here before applying, in just a few minutes (it won't affect your credit score).
Got a question? Call us on 1300 108 794. We're here to help.
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
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