JoshWhen renovating your home, it’s easy to go over budget, spiraling into a pool of debt out of sheer excitement. However, with a bit of DIY know-how, careful strategizing and patience, you’ll be able to add significant value to your property without breaking the bank. Here’s how:
Stick to Your Budget
Having a budget when undertaking home renovations is crucial. It might seem like an excellent idea to load up the credit card with everything you want, but it will leave you in a world of hurt later. Instead, set an expenditure limit for each area of your home and stick to it. If you find yourself with unexpected costs, consider small loans with low interest as opposed to crippling credit.
Nearly-New
Renovating on a budget can be frustrating, as you’ll see so many things that will look fantastic in your home but are out of your budget. However, if you shop around and make acquaintances with local second-hand dealers, you may be able to pick up nearly new furniture and other essentials at a fraction of the cost of buying new. It also pays to check auction sites and swap groups before heading down the route of spending a fortune on brand new goods.
Barter
When it comes to carrying out home renovations, not every step of the process has to involve you handing over a significant sum of money. Think about your skill set – is it something of value to someone else? The concept of barter is still alive and well, with many people, companies, and even countries, choosing to swap products for products or services for services to ensure money doesn’t have to change hands. If you’re handy with computers and your buddy is an electrician, why not fix his laptop in exchange for a helping hand around the house?
Take it Slow
Having the patience to stretch your renovations out can be a challenge. After all, you may feel like it’s easier and less stressful to purchase everything at once with a credit card and worry about the debt later. However, choosing to pay for products and services as you can afford them is going to be so much more beneficial. Set aside a determined portion of each month’s salary and prioritise each project or item of your renovation and tackle only what that budget will cover each month. This takes patience and fortitude as you may feel like you’re living in a half-finished home for what seems like forever. However, In the long term, you will thank yourself for ensuring your finances remain intact throughout this process.
Don’t Over-Capitalize
If you think you will be putting your house on the market in the years to come, then make sure you don’t over-capitalize during the renovation process. Instead of importing that handmade chandelier from Norway for the spare bedroom, you might find that a $20 cute lampshade from a home depot store will serve your purposes just fine.
The key to thrifty renovating is making sure you follow the rule of 20% upgrades for 80% value. That means staying away from expensive add-on enhancements such as swimming pools and giving too much attention (and money) to small details such as granite benchtops over conventional laminate.
Renovating your home on a budget is takes strength, patience, willingness to stick to a strict budget. The long game might come with some drawbacks, but it will be worth it when you finish the task with money in the bank and no crippling debt to drown you in the years to come.