The True Cost of Home Reno

There is no hard and fast rule when setting a renovation budget. Circumstances, like your financial health, will dictate how much you can afford. However, there are a few points you can consider when calculating costs. Guesstimating the budget is a start—everyone does it. This sets the project in motion. It provides a base on which you can actually research and adjust the numbers as you go along. That being said, you should never take these guesses as the final word for your budget.

These initial numbers reflect what you expect the work to cost. There is usually a difference between what you think the costs are and what reality is. Most homeowners fall into this trap and severely underestimate renovation costs. To avoid such issues, take the time to sit down and discuss the financial aspects with a professional. You wouldn’t jump into a wildfire without any plans on how to get out. So why risk it with your renovation project?

If you research correctly, you will have a fair idea of the work involved. Understanding the scope of work contributes to better financial decisions. You can size up the cost of materials, trades, labour, appliances, etc. This is important, especially if you’re managing the work yourself. It allows you to create a comprehensive and flexible budget to cover all the work. If you’re delegating project management to a renovation company, they usually pre-warn you to where extra costs may be incurred.

1. Understanding the Work Scope:

This is crucial when calculating your expenses. Familiarising with the scope of the work allows you to plan ahead. Getting estimates for different phases of the project, material costs, labour costs, etc. is much easier. If you’re DIY-ing, you cannot forego this crucial step. In cases where you hire professionals, like the KIND Kitchens team, you’ll get a detailed run-down of all the possible work involved.

2. Knowing the Trades:

There are many trades involved with renovation, such as plumbers, electricians, carpenters, joiners, and stonemasons. Discussing your project with the tradies gives you a better understanding of the work and where issues may arise. Many of these issues may result in a delay or an increase in cost. Unfortunately, many of these issues are situational and can result from poor work coordination due to a lack of experience. Nevertheless, it’s better to be prepared.

3. Contingency Funds:

As much as you want everything to go smoothly, projects rarely go how you want. Unexpected issues may bump your spending over the line. This is why it pays to have some contingency fund in your budget. Tradies can advise you on the most common problems associated with the project. This helps you prepare beforehand; if the worst were to pass, your project would remain relatively undisturbed. For example, you’ll need a replacement if a floor tile has developed a crack due to its age and is no longer usable during the renovation. Trades that work with tiles can provide this information when budgeting, allowing you to allocate extra funds for such mishaps.

4. Comprehensive Planning:

Planning ahead reduces the chances of potential delays and ensures on-time project delivery. It also allows you to take on unforeseen situations, confidently preventing any hold-ups. The key is understanding all the sub-tasks involved in each trade and knowing the necessary components to finish without delaying other trades. For example, a supplier delay may cause a delay in the cabinetry manufacturing and installation. Coordinating a 2-step installation may reduce delays as consequent trades are unaffected. The delayed items can then be installed while the stone is being manufactured. Otherwise, a butterfly effect may flow on, causing deferred appointments, cancellation fees, etc. When we talk about comprehensive planning, we mean covering all possible aspects of what could go wrong and allowing for a backup plan. Again, many of these are situational and require extensive industry experience.

5. Creating a Buffer:

Considering all the above points, creating a buffer is the only logical conclusion. By now, you should have a fair understanding of the project’s actual cost. In your discussions with the experts and trades, they will have apprised you of the costs involved. Use this information to create a budget with a buffer. For instance, if you’ve earmarked $10,000 for kitchen cabinetry, allow a bit more. This provides a wiggle room in case anything goes off-piste.

When working on creating a renovation budget, experience makes a difference. If you’ve taken on such projects before, you’ll have a wealth of knowledge to draw from. If it’s your first time, don’t worry. There are plenty of renovation companies that will assist with such details.

Renovation projects are not cheap, especially when things go wrong. As such, we want to provide you with all the necessary information before committing. We want your budget to cover any expenses the project may generate safely. This involves material costs, labour, and unexpected fees. As experts, we know how these things work and will handle all the nitty-gritty of the project. Our goal is to ensure a hassle-free renovation process that delivers impressive results.

So, if you find yourself struggling with budget, don’t hesitate to give us a call. You can get in touch with any of our showrooms in Bentleigh, Blackburn, Chadstone and Hawthorn for details.