How much will my renovation cost?
HOW MUCH WILL MY RENOVATION COST?
The best place to start is with a feasible budget in mind.
We know and understand that it can feel a little like the 'chicken & the egg' situation. Where you need to know how much it would cost to set a budget, but to design something to budget you need to first set a cost.
There will be an amount that is within your comfort zone to spend.
This will be different for everybody, depending on a few factors such as:
- How much you have saved.
- The current value of your property
- How much added value could the improvements provide?
- What you can lend and service there after.
- Future proofing your investment and possible rental return.
Whatever your parameters are, this should be your budget when approaching your draftsman/architect and builder.
What is this 'Contingency Budget' I keep hearing about and why would I need it?
The Contingency budget is a safety net to cover things such as:
- Any variations to the plans
- Unexpected findings (common in older homes)
- Such as rott behind walls, once linings are removed
- Volcanic rock breaking, needed to complete the extra foundations for the extension.
- Walls that aren't level, or floors
- Sub-floor joists needing repair or replacement.
Not to spook you, but there are any number of unforeseen issues that can arise when undertaking a renovation.
See our Renovations guide to Villa and Bungalows to get more detail on what you could encounter.
This is why we suggest a 15% contingency fund. It is much better to have an amount set aside to deal with and pay for these challenges, than to feel overwhelmed and concerned about having to delay or downsize your project.
After all, if there is money left in the contingency fund once the project is left over you should be able to easily put it against your lending, or put it towards that extra feature or soft furnishings.
It really is always best to be realistic around the likelihood of changes and unforeseen challenges when undertaking renovations.
No one build is the same, however with experience and expertise they are easily navigated, which is why it is so important to select the right people for your project.
