A home renovation is exciting because it’s a chance to give your property a new lease of life. A fresh coat of paint, shiny new floors, or even a swimming pool addition can seriously increase your home’s curb appeal – and raise its value as well. But it’s also easy to get carried away and uncomfortably stretch your finances, especially when you’re on a tight budget.
How do you reconcile the urge to go all out on your home renovation without tanking your finances? Mr. Cooper weighs in to help determine what home additions to splurge on and where to cut back on expenses to prevent overspending.
Kitchen
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The kitchen is the center of most homes and will likely take a chunk of your budget. The trick here is to spend on items that immediately elevate the feel and look of your kitchen, as well as its functionality. Go for lovely finishes like splashbacks and stone or marble benchtops. Consider extending a bit into the yard to create extra space in the kitchen. And if you’re big on the cooking part, go for top appliances that equip the space with everything you’d want in it.
A pantry and storeroom are also great additions that help add to the value of your home. There is no need to go all out here – a simple walk-in space with sturdy shelves and a cool interior can work well.
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Space is always an issue in the kitchen, and the more sq/feet you’re devoting to this area is less space you could use elsewhere. While integrated installation might cost a bit more, it leaves more space for you and your family. Also, save extra money by DIYing all demolition that doesn’t require expert work.
Windows and doors
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Windows and doors elevate the look of your home from both outside and within. That’s in addition to their insulation properties, which will be valuable in hot and cold weather. Splurge on installations that not only look great but lock in warmth and keep the chill out. You might get by with just minor tweaks to insulate your current installation. But if your windows and doors are 20-30 years old, consider replacing them at once.
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Resist the urge to go high-end on your windows and doors installations, except where it makes sense. A good rule of thumb is to factor these installations into the cost of each room you’re renovating. If a room costs more than 3% to 7% of the value of your home, then you’re likely overspending.
Electrical and plumbing
Splurge
Because they’re usually out of sight, there’s not much focus on electrical and plumbing. But if there’s anywhere you should splurge, it’s here. Up-to-date electrical and plumbing installations will help bring your home up to code. Inspections typically hit snags when it comes to these two, but with upgraded systems, you’ll have an easier time.
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It’s hard to save here since you want all the work done by a professional with top-quality materials. Regardless, you can still cut a few expenses by selecting materials (with the advice of your contractor) and picking them up by yourself.
Painting
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Painting contributes to the curb appeal of your home, and it makes the interior look great. So, pick great finishes, including varieties that are heat, water, and weather resistant. They pay off in the long run as they stay fresh for longer, saving you the cost of frequent repainting.
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Thankfully, painting is one job you can do entirely by yourself. You’ll probably save half the cost of the whole renovation this way, plus it’s a relaxing DIY project that you’ll enjoy completing.
Roofing and floors
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Your roof and floors are critical to your home, seeing as they cover the entire house. Splurge on high-quality roofing materials installed by experienced technicians. Speak with your contractor about the best materials to use and where to install them.
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Go for readily available materials as you select your flooring finish – whether it’s wood, carpet, or tiles. Rare materials may look good, but if it’s something that will be difficult to find if you need additional materials or repairs, it is likely not worth it.
Appliances and fixtures
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Security installations like CCTV cameras, lighting, and safety features like smoke detectors are vital. While they may not necessarily raise the value of your home, they will make it safer and more desirable in a sale. With other appliances like TVs, consider what you and your family will love and go for it with a firm eye fixed on price.
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Remember, only spend a percentage of your home’s value on each room, and that includes appliances and fixtures. Buy what you need by yourself. Of course, ask your contractor for advice, but make the purchase and pick up personally. The contractor might charge you hourly for such tasks, and that’s probably money you can spend elsewhere.
Bed and bathrooms
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After the kitchen, your bed and bathrooms will attract the most attention from potential buyers. Thankfully, achieving stunning finishes with these rooms isn’t difficult – it’s just a matter of great taste and good planning. Bedrooms are relatively easy to finish since they don’t need complicated wiring, plumbing, or appliances. Go for simple colors, adjustable lighting, and nice-sized windows.
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When it comes to bathroom fixtures, keep in mind that more expensive isn’t always better. So here’s where you need to sit with your contractor and closely consider all your options for installations that look good and wear well.
Living area and dining
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Depending on what you’re trying to achieve, your living area might cost you the least, or it might be a money gulper. Lovely architectural details like architraves, skirting boards, and cornices can create a special feel. Likewise, the dining area can benefit from solid furniture and cozy lighting.
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A quality dining area doesn’t necessarily mean investing in pendant lighting or solid oak furniture. Your contractor will have many options for materials that look great but don’t cost as much. Also, consider buying used or refurbished where possible.
Conclusion
As you conclude your home renovation be sure to keep a close eye on your budget and plan for hidden or unexpected costs. As they say, renovations will usually take 30% longer and cost 30% more than you expect. It’s always a good idea to set aside about 10% to 20% of your budget for those unexpected expenses.