Budgeting. It’s a love-hate relationship. Caleb “the saver” gets excited about spreadsheets, while Alice “the spender”… not so much! After seven renovations, we have come to value and prioritise the role a budget has within each of our projects.
In this video series “Dollars and Sense” we will share the budget progression of our latest renovation project - Our Charmer in Alexandra. But before we set the budget, we want to give a shout out to budgets and share why they are an essential part of what we do.
Our Advice for Addressing your Budget
Renovations serve many different purposes, and it’s important to know yours when you start. You may have a growing family and need more space, love cooking and want a new kitchen, sick of the outdated style and want to modernise... Or like us, focusing on getting a return by adding value to your property.
Once it’s clear why you are renovating, you will probably want to know how much to budget for it. There are some key factors that will influence your budget, this is a good place to start when you are start addressing your renovation cost.
Your House. One of the biggest factors which will influence your budget is your house - what you are working with. What is its current condition, how big is it, where is it located, what is its current value.
Your Plans. Each project will vary in price, understand the scope of your project. It’s easy to keep adding to your project, which of course will add to the budget.
Funds. Whether it be money you have saved for this or borrowing, what funds do you have available to spend will determine your budget for your renovation project.
Expectations. What finishes, quality standards are you expecting? Your Pinterest board or the design detail you have eyed up at your friends home may have a large price tag attached to it! Know what you are aiming for, be realistic, and factor the cost of this in.
Complexity. There are different scales of renovations. A bigger project will require more money to complete, but so too will a more complex renovation. One that might include structural works, consents, multiple contractors, consultants and professionals.
This blog was sponsored by Kiwibank. Whether you're taking your first step or next step on your property journey, Kiwibank's home loan experts are available to help you through the process.
Their Mobile Mortgage Managers can come to your choice of location and their Banking Consultants are available at your local Kiwibank branch. Call 0800 000 654 or visit kiwibank.co.nz/homeloan for more information.