Starting a renovation project can be daunting experience at the best of times; there are big decisions to be made and large sums of money to invest. And whatever the size of your imagination, project scope, or spreadsheet, it’s likely that you’ll come across a few stumbling blocks along the way.
Disruptions come in many shapes and sizes, whether it’s unavoidable wet weather or untrustworthy tradesmen. But they usually end up at the same place: where you part with hard-earned cash.
You can’t finish the job if you’ve spent all of your money fixing issues, so help protect yourself with these critical cash-flow tips.
Decide how much money you want to spend
If you’re doing a renovation to add value to your property, think about how much you want to invest to do so and consider the returns you may get from your renovation down the track. As a general guide, spending approximately 5 per cent of the purchase price can be a good place to start.
Form a thorough spending plan
It’s vital to research your outgoings thoroughly before embarking on any project. Get quotes from at least three different suppliers and tradesmen for each stage of the job, and use this information to compare their rates. It can feel a little tedious at first, but taking time to make the right decisions early could save you thousands of dollars in the long run.
Save more money than you need
Once you have the final figure in your head, budget to spend at least 20 per cent more. This contingency money could be vital in unforeseen circumstances, such as fixing some shoddy workmanship, and will provide you with invaluable peace of mind.
Respect the workflow
Tracking the day-to-day progress of different jobs is key to protecting your bottom line. Any hold ups can have a knock-on effect for the whole project, so stay on top of your schedules – or ask someone else to help you. If you’ve planned the project realistically and obtained references to help ensure you have efficient workers, you should be able to stick to this like glue, give or take some bad weather delays.
Keep the end in sight
While it can be tempting to dive into a project before it’s fully formed, you’ll protect your bank balance if you’ve planned right through to the end result – even if you’re working in stages. Making big decisions when you’re tired, stressed, and stretched can lead to costly emotional decisions. And one more thing … always ensure you have enough money to finish the job!
All The Best The Geraldton Property Inspection Team
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