Fixer 101: How Much to Put Away for Your Home Renovation Budget
In the market for a fixer upper? Make sure you make room in your budget for it. Read on to learn how much to set aside for your home renovation budget.
We are expecting to shell out anywhere from $5,600 up to $7,500 on home renovations every year. The older generations typically spend more than the younger ones.
Is that reliable though? Let’s really dive in and see what our home renovation budget should entail.
Budgeting for the Unexpected
Everyone tends to believe the unexpected will not happen to them. In reality, a foolproof budget will include wiggle room those unexpected things pop up.
You will want to budget for these unexpected costs.
- Plumbing
- Electrical
- HVAC
- Roof
- Foundation
Do Your Research
With anything, I will want to do my research. If we are looking to tackle our kitchen, we will want to research what other people have spent or what the going kitchen renovation is in our area.
This is going to be the best thing we can do to ensure our renovation budget is as solid as it can be.
Get Bids From Multiple Contractors
If we are choosing contractors to do the dirty work for us, its best to get as many bids from contractors as we possibly can.
Make sure all bids are written on paper and it clearly states that this includes everything that we are looking for.
Just like you shop for auto loans on https://viefinancial.com.au/home-loans/, you will be shopping for contractors. It’s a great way to get the best possible price.
Renovate in the Off-Season
Great money saving tip that we highly recommend is renovating your home in the off-season.
The off-season is in the winter months, especially around the holidays. Contractors usually don’t have much work going on because no one wants to renovate near the holidays.
This is a great method to use when we are sticking to a strict budget. The only downfall is our home may not be holiday ready!
Realistically, How Do We Fund Our Home Renovation Budget?
Now, that we’ve spent a little bit of time on what we should do to come up with a number, let’s see if that number can be a reality.
Budgeting for a home renovation is going to be a pricey project. There are a few ways we can tackle this. We can use one of the below options.
- A home equity line of credit
- A home equity loan
- A cash-out refinance
- A personal loan
These four options are what is typically used in this type of situations. We will have to choose the right option for us. We do highly recommend that you figure out how much a month you can afford, before applying for any of the options above.
What’s Next?
When you are 100-percent ready to start your home renovation budget, we will want to figure out exactly what we want to do, what time frame, and secure a contractor. After we find a contractor we like, we will want to ensure we have the funds to do everything that we are planning. Lastly, we wait.
If you are looking for more home improvement tips, you’ll want to check us out.
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