Renovating can have many benefits. It can potentially help increase your property’s value as well as improving your lifestyle. Knowing how much to spend on a renovation and staying on top of costs takes some work.
We asked some homeowners who have been through the renovation process for their top renovation finance tips.
Add value to your property
Leah, from Vaucluse, says, “We wouldn’t do it if we didn’t think it was going to add value. We are really conscious of not spending more than what the house would be worth if we wanted to then sell it”.
Take the time to research your area and find out what types of properties are most popular. This could give you an idea of what features are more likely to appeal to buyers and add value to your home. Our Property Guide app can help you work out what your renovated property might be worth, with for sale listings, suburb property stats and more.
Get out and visit some open homes in your area. This helps give you an idea of which types of features might add value to your home and appeal most to buyers in your area.
Stick to your budget
Dale and Libbie, from Loftus, say, “We’ll keep track of all our expenditures on a spreadsheet, week to week, input all the invoices and all our expenses, and check with the balance sheet”.
“Just budget throughout the whole time and be really transparent about it: calculate your costs at the end of every day and every week and make sure you’re not blowing it out”.
Keeping a close eye on your renovation budget is vital if you don’t want costs to blow out. Make the most of the online tools that are available to you.
One useful NetBank feature you can register for is My Spend, where you can automatically group your transactions into categories like building materials, labour and furniture. You can use My Spend to get a snapshot of your spending habits over time, which can help with your renovation budgeting.
Know what you want
It’s important to be clear about your plans from the beginning. Poor preparation can end up being expensive. It’s one of the most common renovation pitfalls. Sunayana, from Denistone, says, “Get a good builder and do your sums really carefully. Be very clear about what you are going to do”.
Make the most of a flexible home loan
If you’ve got a flexible home loan, you may have several options available to help you access money for your renovation plans.
There are lots of ways to finance your renovation. For example, if your home loan is eligible, you may be able to top up your existing home loan to access extra money for your renovations, without applying for a separate loan.
Libbie, from Loftus, says, “Flexibility is really important in a home loan in case you want to do a renovation. You don’t have to go and fill out a lot of paperwork and make a real big change to a different bank. You could go out and start renovating tomorrow; it wouldn’t have to be something that was three or six months down the line”.
Speak to one of our Home Lending Specialists about your renovation plans.