Budgeting for your renovation - don’t know where to start?

How to Budget for a Renovation

Renovating your home is an exciting journey, but without a solid budget, it can quickly turn into a financial headache. Avoid unexpected costs and stressful surprises with this step-by-step guide to budgeting for your renovation.

Step 1: Start with a Clear Vision

Imagine walking into your newly renovated space—what does it look like? Is it a sleek modern kitchen, a luxurious bathroom, or a full home transformation? Before you even think about costs, define your goals clearly.

✅ Make a list of must-haves (e.g., new flooring, upgraded appliances) and nice-to-haves (e.g., custom cabinetry, high-end finishes).

✅ Collect inspiration from Pinterest, Instagram, or home renovation shows.

✅ Be realistic about your space and what’s achievable within your budget.

Step 2: Know Your Numbers

Budgeting isn't just about estimating costs—it’s about planning for every dollar. Here’s what to factor in:

💰 Materials – Flooring, tiles, paint, cabinetry, fixtures, and appliances. Your choices here can make or break your budget.

👷 Labour – Builders, electricians, plumbers, and painters can make up 30-50% of your budget. 📝 Permits & Approvals – Some renovations require council approvals or building permits—check before you start.

⚠️ Unexpected Costs – Set aside 10-20% for surprises like hidden structural issues or necessary design changes.

🚛 Demolition & Waste Removal – Consider skip bin hire or waste disposal fees. 🏡 Temporary Living Costs – If your renovation is extensive, factor in accommodation or meal expenses if your kitchen is out of action.

💡 Pro Tip: Research typical renovation costs in your area to get a realistic idea of pricing.

Step 3: Prioritise Your Spending

Not all upgrades have the same impact. Focus on high-value areas like kitchens and bathrooms, which add the most resale value.

🔹 Biggest ROI: Kitchen and bathroom renovations, flooring upgrades, and open-plan living conversions.

🔹 Budget-Friendly Fixes: Painting, cabinet refacing, and updating fixtures can refresh a space at a lower cost.

🔹 DIY or Professional? Some tasks, like painting, can be DIY to save money, while electrical and plumbing work should always be done by a professional.

Step 4: Get Multiple Quotes

Never settle for the first quote! Comparing options helps you get the best value without compromising on quality.

📌 Request detailed quotes from at least three contractors.

📌 Ensure quotes include materials, labour, and timelines so you can compare apples to apples.

📌 Look at reviews and past projects before making your final decision.

📌 Cheaper isn’t always better—consider warranties, experience, and professionalism.

Step 5: Track Your Expenses

Stay in control of your renovation budget by keeping tabs on every expense.

📊 Use a spreadsheet or budgeting app to track spending in real time.

📊 Categorise costs into materials, labour, permits, and unexpected expenses.

📊 Regularly compare your actual costs with your original budget to prevent overspending.

Step 6: Explore Financing Options

If you don’t have enough savings, consider these funding solutions:

🏡 Home Renovation Loan – A personal loan designed for home improvements.

💳 Credit Cards – Useful for small projects but watch out for high interest rates.

🏦 Mortgage Refinancing – Borrowing against home equity for major renovations.

♻️ Government Incentives – Check for grants or rebates on energy-efficient upgrades.

Step 7: Plan for the Unexpected

Even the most carefully planned renovations hit roadblocks. What happens if:

❗ You uncover water damage behind your walls? ❗ The cost of materials suddenly increases? ❗ A project takes longer than expected?

➡️ Always have a contingency fund (10-20% of your total budget) to cover unexpected costs.

➡️ Be flexible with timelines—delays can happen due to weather, supply shortages, or unexpected repairs.

➡️ Keep communication open with your contractor to stay updated on progress and any budget changes.

Final Step: Stick to the Plan!

Once your budget is set, resist the temptation to splurge on extras mid-renovation. Small upgrades here and there can add up quickly.

✅ Keep your end goal in mind—a functional, beautiful, and affordable renovation. ✅ Regularly check in on your budget and expenses. ✅ Work with trusted professionals to ensure a smooth renovation process.

A well-planned budget is the key to a successful, stress-free renovation. Need expert advice? Contact us today for a transparent quote and let’s bring your renovation dreams to life!