There are a lot of things out there competing for a piece of your annual budget. This is something all homeowners learn very quickly. Owning a home is a good basis for financial stability and gaining equity over time, but it also comes with an ever-expanding list of expenses and routine maintenance tasks.
There’s also the question of home renovation. Every homeowner who wants to boost their quality of life, and boost their market value in the process, will consider home renovation sooner or later. It’s an excellent way to customize the home and make it more suitable to your tastes and lifestyle. And if the right renovations are put in place, the value of the property will increase. Whether or not you intend to sell the property in the immediate future, renovations can improve your financial picture by driving increases in home equity.
So what’s the problem? Why doesn’t every homeowner go in for home renovation immediately?
The first (and most obvious) issue is cashflow, since most projects require a substantial investment. For example, national averages for bathroom renovations run between $5,000 and $12,000, while the average cost of kitchen renovations runs from $12,000 all the way up to $30,000.
For many people, financing such a project means dipping into a precious savings or accepting a loan from the bank. There may be viable ways to make it happen, but people don’t know if their investment is going to pay off. If you’re going to pour that much cash into a home renovation project, you want to be as certain as possible about the results.
1. Focus on projects that have an established ROI
Maximizing your budget starts with the project(s) you choose to undertake. For example, if your roofing or siding is badly in need of repair, it’s not going to be a wise investment to ignore such problems and go for a more exciting renovation project instead. But if your property is basically in good condition and nothing is in need of serious attention, take a look at industry trends and statistics. Some of the most commonly cited renovations that command high returns including kitchens, bedroom additions in the attic, new outdoor decks, new entry doors, new garage doors, and updated bathrooms.
2. Do less with more
People are always trying to figure out how to do more with less, but in home renovation, there’s a lot of evidence to support the opposite strategy. Homeowners often use cheaper materials or hire inexperienced companies in order to save a buck and stretch their renovations further. But the most successful projects are those that achieve quality, long-lasting renovations—even if it means accomplishing less.
3. Partner with a home renovator who knows their stuff
If you really want to maximize your home renovation budget, find a home renovator you can trust. This sounds obvious, but having the right people in your corner can prevent a lot of common budgeting problems. These experts are out there, and they’ll help you with everything from choosing the right projects to selecting the designs and materials that are going to represent the best value for the money.
Getting advice that counts
While a lot of the information online is good, home renovations are a serious investment. Consult a reputable professional about your designs, ideas, budget, and renovation goals—this will definitely give you real world perspective and help you make the most of your renovation budget!