Renovating a Property: A Guide
Renovating can be an effective way to boost your property value and increase your investment return, too. Home renovation projects can also greatly improve your living environment and create a more functional and enjoyable space for you and your family.
Despite the many benefits, renovating can be a huge wasted expense if done badly. For that reason, you must complete thorough research before starting any renovations and take the time to plan for any projects.
With this in mind, here is a useful guide on how to renovate a property.
Set a realistic budget
The first step to planning your renovation project is to set a realistic budget. Having a budget will help you monitor spending and keep costs under control. It will also ensure that you have realistic expectations about the total cost of each renovation project. To set a realistic budget, you must have a thorough understanding of the various costs involved in different projects. You should also have some money set aside to cover unforeseen issues i.e. you may have interior wall damage that is not apparent until work has started.
Having a contingency fund will give you peace of mind that your budget will not become over-stretched if unexpected costs arise during the renovations. According to livabl.com, you should have a contractor look over your budget to check that it is realistic.
Consider finance options
Once you have decided which home projects you want to focus on and have a rough budget in place, you must then decide how you are going to fund your renovations. There are various ways to finance home improvement projects including a mortgage refinance, personal savings, credit cards, and various loans. Bridging loans are a fast, short-term funding option that can offer another way to gain the funds to carry out home renovation projects.
Experts at Alternative Bridging Corporation explain how bridging loans are “secured by a first or second charge for properties that are owner-occupied or held for investment.” This makes it possible for homeowners to take out a bridging loan to cover the costs of renovations. There are advantages and disadvantages to the various finance options, so make sure that you consider your options carefully and choose the funding that best suits your needs and requirements.
Prioritise home projects
Once you have a budget in place, you must prioritise your renovation projects according to urgency and need. As mentioned, renovations can be a wasted expense if done incorrectly. For that reason, you must do your research and choose smart home improvements that are likely to give you a good return on investment.
Here are a few of the most profitable home improvements to consider:
• Deck additions – Installing a deck or patio can instantly boost your curb appeal and increase your property value.
• Basement remodels – Converting your basement can be a cost-effective way to improve your property value by creating additional space that can then be used as a spare bedroom, a home office, or a games room.
• Bathroom upgrades – This is an affordable alternative to a complete bathroom remodel. Even small improvements, such as upgrading fixtures or replacing tiling, can make a big impact.