renovationTaking control of your

budget

We’ve all seen the TV shows and heard the horror stories about renovation budget blowouts and serious overspending. The good news is it doesn’t have to be that way. Follow a few simple steps and you’ll find it’s easy to take control of your home improvement spending.

renovation budgetTaking control of your

A budget is essentially the financial plan for your home improvement project. It states how much money you plan to spend, what you plan to spend the money on, and where the money will come from.

Whether you have cash in the bank or will borrow against the equity in your home, your budget is the starting point for your home renovation project.

Knowing how much you can afford to spend means you can have an open and instructive chat with your renovation specialist. Together you can plan a renovation that will exceed your expectations, not your budget.

A skilled renovation specialist will also help you identify your key renovation goals and direct the dollars into the areas that will give you the best value for your money. With budget and design working hand in hand, you’ll not only be confident you can make the changes you want to make, but you’ll also rest easy knowing everything is accounted for.

and why do I need one?

5.3 x 3.8High Ceiling

C

PorchHigh Ceiling

4.0 x 3.1

Sunken

Home Theatre

4.7 x 4.0

7.7 x 5.6overall

3.9 x 2.9

High Ceilings

Entry

High Ceiling

Feature Ceiling

3.6 x 2.9

High CeilingsHigh Ceiling

DressingRoom

DressingRoom

Alfresco

Kitchen

Laundry

Master Suite

Double Garage

4.2 x 4.1

Bed 2

Living

Dining

Bed 3

Home Office

But, how do I know how much I’ll need?Well before you get to the design stage, a good home improvement company will discuss your ideas with you and give you a ballpark figure in terms of what things might cost. You then have a reliable dollar amount to take to your lender if you are applying for finance.

Once finance has been approved and you’ve added in any additional funds you’re putting towards the project, that’s your budget.

Once you have your budget, the design will really start to take shape and you’ll see just how many changes will happen in your home.

What is a budget

It’s important to consider your project from start to finish. This includes everything your builder will take care of, as well as the things that you need to look after.

A renovation specialist such as Dale Alcock Home Improvement will look after the whole project for you - from planning applications, to design, construction and the finishing touches. There are, however, some expenses that you’ll need to factor in separately. These may include:

the budgetBreaking down

If you’re planning to move out while the work is being done and don’t want to impose on family or friends, you’ll probably need to rent for a while. Ask your builder for a realistic timeframe so you can budget accordingly. Depending on the work being done, DAHI can minimise disruption to family life so that you can potentially stay in your home during construction. It may even be possible to tackle the work in stages.

Depending on what changes are being made to your home, you may need to budget for a garden tidy up or new landscaping to suit a new exterior.

If you’re taking out a loan or topping up an existing loan to fund your renovation, bear in mind that you’ll need to start making additional payments as the project progresses. Ask your builder for a schedule so you know what you’ll have to pay and when.

A new look often calls for new furniture. If you’re adding new rooms, chances are you’ll need some extra pieces to fill them.

Once your renovation is complete, you may want to give the older areas of your home a simple refresh. It could be as simple as a lick of paint in bedrooms, but it can help make the whole house shine like new.

Don’t forget to allow for painting and new flooring, carpets and window treatments if these aren’t included in the contract with your builder.

Rent Repayments

Landscaping

Finishes

Furniture

Incidentals

One of the best ways to get maximum value for

your renovation dollar is to focus on the must-

haves that will change the way you live and enjoy

your home. This means identifying what you

need from your home improvement project, as

opposed to what you want. The ‘wants’ are those

things that would be nice to have – but aren’t

strictly necessary. They have a nasty habit of

breaking the bank, but can be avoided if you

single them out from the start.

It’s advisable to get a clear picture of what your

home is worth now and what it might be worth

once you’ve improved it. This will help you set

your budget and will keep you focused. Choose a

lender that understands construction loans and

the importance of valuations.

Needs v wants

Valuation1

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Our top 5budgeting tips

Agree on your budget before your designer gets to work so that you’re clear about what there is to spend. A skilled renovation specialist such as Dale Alcock can then come up with a solution that gives you the extra space or modern look you’re after without overspending.

This is exactly what it says – a contract that lists the work to be done, all for a fixed price. Not only do you get peace of mind with regards to how much you’re going to spend, but also lenders generally prefer fixed price contracts rather than ‘cost plus’ contracts that offer less certainty. A fixed price contract means it’s easy to understand when your builder will ask you to make payments. Another benefit is that lenders are often happier to allow extra in the loan for finishes such as furniture and landscaping. As an added bonus, Dale Alcock Home Improvement offers both a fixed price contract and a fixed timeframe guarantee, so you know you’ll be finished on time, as well as on budget.

With a fixed price contract in place, you’ll know what you’ll be spending on the bulk of your renovation project. That means no nasty surprises down the track. And with a realistic budget in place, you’ll also have that new sofa and some plants for the garden covered. That all said, it’s still a good idea to include a small contingency fund so that you have funds available when you fall for that amazing artwork or decide to replace the barbecue.

Budget first

Fixed price contract

Contingency fund

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Sit down for a chat with the team at DAHI and Resolve Finance. Call us on (08) 6558 0764 or head to dahi.com.au

Ready to start budgeting?

Making the budget go further If you’re smart about how you spend your renovation budget, you may be surprised at just what can be included. A builder that specialises in home improvments, such as Dale Alcock, willl have a clear understanding of what things cost when it comes to home improvements. Not only will they know all the tips and tricks to be able to design from a practical, budget-conscious perspective, they will also have the skills and experience to factor in your design and lifestyle aspirations.

Handy to know... As a rule, the best value for money when

renovating comes from adding space to

your existing home.

Sometimes, even what seems like a

simple change has a knock-on effect that

involves more work. Removing a wall, for

example, may involve patching the floor,

installing a structural beam and matching

existing wall finishes.

Siteworks will be needed if you are

extending the ground floor area of your

home. A seasoned renovation specialist

can factor the cost of these into the overall

contract price for you.

Adding a simple, single-storey, open-plan

space at the back of your home is a very

cost-effective option, especially when you

keep the bones of the original property in

tact. If you need to go up, putting the upper

storey over a new ground-floor extension is

often the most cost-conscious solution.

Work with a construction finance specialist

to make sure you are getting the best

advice - Resolve Finance, our in-house

specialists here at Dale Alcock, can help

with any questions you might have.

DALE ALCOCKHOME IMPROVEMENT

1 Pearson Way Osborne Park WA 6017 T 6558 0764

dalealcock.com.auDale Alcock Homes Pty Ltd BC7309. Produced September 2017.