How to Budget for a Home Renovation: Expert Tips with Handypay

Demand for personal loans in Australia is on the rise and it’s greater than it’s ever been. Renovating your home can significantly improve its value and appeal, but managing your budget carefully is key. Budgeting for a renovation involves more than just covering the costs of materials and labour - it also means being prepared for both the expected and the unexpected costs.

Here’s a step-by-step guide to help you plan your renovation budget and how Handypay can help you stay on track with flexible financing options.

Set Clear Goals for Your Renovation

Start by deciding what you want to achieve with your renovation. Are you upgrading a bathroom, remodelling the kitchen, or doing a full home overhaul? Make a list of the changes you want, from minor fixes to major upgrades, and rank them by priority. Having a clear picture of your goals will help you allocate funds properly.

Tip: Break down your renovation into phases if possible. For example, focus on the kitchen first, then move on to the bathroom or living space. This approach will help you manage costs better and give you time to distribute savings between phases.

Research Costs Thoroughly‍

Before starting, research the cost of materials, labour, and any extra fees like permits. A thorough understanding of market rates will give you a realistic sense of what you’ll need to budget for.

Tip: Get multiple quotes from contractors to compare prices and make sure you’re getting good value for your money. Remember Classified as Confidential the cheapest option may not always be the best, so consider factors like quality, reviews, and timelines.

Include a Contingency Fund‍

Unexpected costs can arise even during a well-planned renovation, so it's wise to set aside a contingency fund—about 10-20% of your total budget. Structural issues, delayed permits, or rising material prices can push your budget higher than expected.

Tip: Use your contingency fund for emergencies only. If you don’t need it, you’ll have extra funds for finishing touches like decor or landscaping.

Plan for Hidden Costs‍

Be aware of hidden costs that can quickly throw off a renovation budget if you're not prepared. These can include:

• Permit fees: Certain types of renovations require permits, which can add to your overall costs.
• Temporary accommodations: If your renovation is extensive, you may need to move out temporarily, which could mean extra expenses for lodging or storage.
• Utility upgrades: Older homes may need electrical, plumbing, or heating updates to accommodate your renovation, which can add unexpected costs.‍

‍Tip: When talking to contractors, ask them to outline all potential hidden costs. This will help you avoid surprises down the road.

Explore Financing Options

‍Even with careful planning, many homeowners find it challenging to cover all renovation costs upfront. This is where flexible financing options can provide much-needed relief. By spreading payments over time, financing lets you focus on the renovation itself, without the immediate financial burden. We understand that renovations can sometimes exceed initial budget expectations, whether due to unexpected costs or the desire to upscale to a more luxurious design. With Handypay, you don't need to settle for less or skimp on quality. This is why thousands of Australians choose our tailored payment plans, which offer:

• Canstar award-winning value: Our financing solutions have been recognised for providing exceptional value to customers, ensuring you get the best for your renovation needs.
• Loan amounts from $2,001 to $75,000: Finance everything from small upgrades to major home renovations.
• Fast approval process: Get your approval decision in minutes, allowing you to start your project without delays.
• Flexible repayment terms: Choose to repay weekly, fortnightly, or monthly, with terms ranging from 1 to 7 years.
• No upfront payments: Start your renovation immediately and pay as you go. With Handypay’s financing options, you can maintain your cash flow, keep your savings intact, and manage larger projects with ease.

Get your free no-obligation quote with Handypay here.

Track Your Spending‍

Once your renovation is underway, make sure to track your expenses regularly. This helps ensure you're staying on budget and allows you to make adjustments if necessary. Budgeting apps or a simple spreadsheet are effective ways of doing this.

Tip: Don’t wait until the end of the project to check your budget. Monitoring your spending as you go will give you more control and help prevent overspending. Conclusion Budgeting for a home renovation requires careful planning, research, and flexibility. By setting clear goals, factoring in hidden costs, and staying prepared for the unexpected, you can create a budget that work for your project and your financial situation.

‍Conclusion

Budgeting for a home renovation requires careful planning, research, and flexibility. By setting clear goals, factoring in hidden costs, and staying prepared for the unexpected, you can create a budget that works for your project and your financial situation.

Handypay makes it easier to manage the costs of your dream renovation without draining your savings. With flexible loan options, competitive rates, and easy approval process, you can bring your renovation ideas to life without the stress of large upfront payments.

For more information on how Handypay can assist you in financing your project, click here