October 03, 2016
Results from the 2016 Mortgage Choice Money Survey reveal that more than a third of Australian home owners are planning to renovate their current home in the next 12 months.
These results aren’t surprising seeing as renovations not only increase the value of the property, but also allow homeowners to stay at their current address.
The survey revealed that 57% of those looking to renovate said they would look at renovating their kitchen or bathroom first. While renovating a kitchen or bathroom can add significant value to your property once complete, these types of renovations can impact living in the home for a while, and are costly.
Here are some handy tips from Mortgage Choice Woolloomooloo for you to consider when planning renovations
TIP 1: Set your budget
It’s important to set a budget for your renovations. This includes asking yourself if you will be able to stay in the home for the duration of the renovations, or will you need to find somewhere else to stay. When completing renovation work yourself, it’s important to do research and know exactly what is involved before beginning. If you are hiring professionals, it’s a good idea to get a few quotes from different builders to get a clear idea and range of what your costs may be. It can be difficult to stick to a budget once you start, but it’s good to know what you’re up for.
TIP 2: Expect the unexpected
Inevitable costs always arise, even when you hire a professional for a fixed price. To cover yourself in this instance it’s a good idea to factor into your budget a financial buffer. This way you have some leeway if your paint choice isn’t quite right, or some materials become damaged and need to be replaced.
TIP 3: Arrange your finance
After working out your budget, you will need to arrange finance to pay for your renovations. Do you have cash in an offset account? Do you have a home loan that will allow you to redraw funds? Can you refinance your home loan? Speak to one of our brokers to find out the best option for you.
TIP 4: Ask for help
It’s always a good idea to ask for help where ever possible. Reach out to friends and family and use your connections to make your renovations easier. You might know someone who can get you a discount on products and materials, or someone who can assist the demolition. You could reduce the time and money you need to invest for the renovations.
TIP 5: Remember to breathe!
Renovations are usually a stressful experience. It’s important you make yourself fully aware of the process before you commence it. Speak to friends and family who have gone through the process themselves. Find out the estimated time of the renovations and how liveable your house will be while they are underway. Prepare for timelines and budgets to change, take a breath and remember; it will all be worth it in the end!