Outgrown your property? Six top tips for renovating
Renovating, whether your own home or an investment property, is an exciting time. But it can be stressful, too. Careful planning will ease the pain.
The chance to update and refresh your property, and possibly your lifestyle too, is something all property owners are likely to have at least considered, if not experienced.
And while you don’t need to look far for renovation inspiration and ideas – there are countless television programs and magazines about how and why to improve your property – what about the nuts and bolts of it, such as planning and finance?
We have helped a lot of Sydneysiders renovate their properties. Here are our top tips when it comes to what to consider before you get started:
Put simply, you don’t want to spend more money on your renovation than the amount of value it will add to your property. An independent valuation of your property is a good starting point. Our Property Value Guide can help you determine how much you should aim to spend.
Think about what you want
Work out, as clearly as possible, what it is that you want to do before you start. This will minimise the risk of costly changes to plan once work is underway.
Make a detailed list of everything you need, and draw up contracts with builders and tradespeople before work starts.
Estimate costs as thoroughly as possible before the renovation begins. A budget planner can help. A detailed budget will give you a good idea of how much money you will need to cover the renovation, and also enable you to keep an eye on how the budget is tracking as work progresses. A bit of planning goes a long way towards preventing or minimising a budget blowout.
How will you pay?
Work out how you will pay for the renovation before you begin. “Renovation” is a popular option for our customers when applying for a home loan Top Up. A top up allows you to borrow on your existing loan without taking out a separate loan. Alternatively, redraw gives you access to any repayments you have made that are over and above your required amount. Talk to one of our Home Lending Specialists to see if a home loan top up or redraw is available with your loan.
Where will you live?
Anticipate whether you can stay in your place while the work is underway, or might need to move out for some or even all of the renovation. You might need to factor in the cost of renting a place to live, or perhaps you can stay with family or friends.
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Commonwealth Bank of Australia ABN 48 123 123 124.