Uncategorized

How to Set a Home Renovation Budget

»Posted by on Sep 23, 2019 in Uncategorized | 0 comments

Whatever it is that you do, creating a budget and sticking to it is a huge challenge. It’s going to be a bigger challenge if you’re creating a budget for a project that you’ve never completed before. Building a viable home improvement budget entails a thorough strategy and a lot of research. 

 

Fortunately, there are people who can help you with that. Just follow the tips listed below to effectively make a home remodeling budget that will prevent you from spending too much on your next home renovation project. 

The Cost of Home Remodeling 

The average price of renovating a house that’s less than a thousand square feet is pegged at $18,000. If the area is increased to 4,000 square feet, then the budget rises to $36,000. Renovating an old house also costs more compared to renovating a relatively newer house. This is because there’s a need to update the wiring and plumbing features of an old house.  

Generally, you can say that a home improvement project will cost you $200 for every square foot. When renovating your home, prioritize each project involved so you can create a workable budget for it. Remember that home renovation is an investment and you intend to get your money back when it’s time to sell. 

How Much to Spend on a Home Renovation Project  

Consider the value of your entire house when setting a home improvement budget. That’s how you get a good estimate of the project. Never spend 10% of your total budget on just one room of the house. Spending more for the renovation doesn’t necessarily mean adding more value to your home. Everything has to be done in the right proportion. 

For instance, your home is valued $100,000. If that’s the case, then should spend a maximum of $15,000 when renovating your bathroom or kitchen. If your home is worth higher than that, then you’re allowed to spend a little bit more. 

Check your Finances when Setting a Budget  

You have to know beforehand how you’re going to fund your home improvement project before thinking about the budget. If you’ll pay cash for it, then you’ll have to consider the funds you have available. The same is true if you intend to take out a mortgage or apply for credit to finance your home improvement project. 

Always set aside at least 10% of your funds for unexpected expenditures. This step is essential because if something fails to go as planned, you still have some money to make it right. The money you put aside also ensures you that the project will be completed regardless of what may happen along the way. 

Prioritize Your Needs  

A home renovation project doesn’t always have to be a major renovation. Depending on your budget, you can just fix the bathroom and kitchen first. The other parts of your home may be completed at a later time. If you need guidance on how to plan a home improvement project, consult with professional Niagara home remodeling experts to help you out.  

read more