According to data published by ABS, in the year 2015-16, Australians spent a whooping $7.7 billion on home renovations.
Indeed, whether you are renovating for profit or simply renovating your home to make it more comfortable for yourself, the process requires ample amount of patience, planning and money as well! Renovations that don’t turn out as expected are not only a drain on the pocket but also disturb your mental peace with so much planning gone awry. And while you can find hundreds of renovation ideas online, today, we will share with you some top mistakes that home buyers make while renovating their homes:
1. Not setting a budget early – It is possible to create a great house out of any budget if you plan things out meticulously. However, more often than not, budget considerations come after one has thought about the changes one would like to make to his or her house. This scenario can lead to overspending your finances in the months to come, significantly.
Instead, set the budget for your reno early on by roughly calculating the cost of the renovations you intend to undertake. You will find this online construction cost calculator handy.
While preparing the budget, it makes sense to take quotes from a minimum of three different tradesmen. Further, it is a good idea to plan a budget that is somewhat lesser than what you can actually afford to spend. This will ensure that you have a buffer to take care of any unforeseen expenditure that may arise during the renovation process.
2. Not hiring professional help – While plenty of DIY renovation projects can be found online, if you intend to make major changes to your property, hiring the right professional from the very start is essential to the success of your project. “Having a professional onboard will help you prevent costly mistakes in terms of design, trends as well as functionality. An experienced professional can play around with space, light and structure to create a beautiful home that is functional as well,” says [Patrick Morgan], a mortgage broker registered on the HashChing platform.
If you are wondering how to choose the right professional for your reno, the answer is simple! Speak to your family and friends for recommendations but also check out the work done by the architect or the builder to be sure that your building and design ‘taste’ matches with that of the professional you are going to hire.
3. Renovating only for yourself – Your house is completely your domain, but when you undertake renovations that are not in line with what the market or potential home buyers generally want you might significantly hurt the value of your most precious asset. For example, you may spend a large amount to build a swimming pool on your property but it is unlikely many home buyers are going to pay for the addition, despite the fact that they may absolutely love it. On the other hand, if your house is located in an area that is more popular with families than young couples, spending on constructing an extra room or a bathroom can potentially add thousands to the value of your house.
A well-planned reno can boost the value of your house significantly, helping you build equity in the property faster. Do you know you can tap into this equity to fund the deposit on your next property? Get in touch with your mortgage broker to find out more.
The HashChing platform is committed to simplifying the process of financing your property. Whether you are looking to finance your first home or purchase an investment property, compare mortgage rates for the most competitive home loan deals in the market.
By Vidhu Bajaj