Major home repairs often need major financing behind them to get the upgrades needed. And for the most part, costs can be predictable, but not all the time, especially for larger projects. Even those that seem straightforward on paper can spiral out of control cost-wise if you’re not careful.
But what can you do to help you afford major projects and protect your budget to save a lot of stress before things even get started?
Set a Realistic Budget Before You Start
One of the best things you can do prior to starting any major renovations is to set a realistic budget. This isn’t a budget based on best-case scenarios or lowest costs for materials and labour.
You need to get quotes from multiple contractors or suppliers to get a better idea of average costs to work from. Factor in everything like labour, materials costs, and any permits you need to get too for the work to start or be completed.
But don’t just use exact numbers; increase them a little bit to account for changes in prices during the work or if you need to change your materials, for example if they’re suddenly harder to come by or the supplier has a shortage.
Compare Financing Options Available to You
Not every project needs to be paid for upfront if this is an issue for you, and there are usually ways to spread the cost depending on what’s being financed. Some retailers and specialists offer their own payment plans directly, which can work out more manageable than dipping into savings all at once.
Options like interest free kitchens are worth looking into if the project involves your kitchen specifically, or alternative interest-free plans for other types of major work like bathrooms or a new roof. From here, look at other types of financing like loans or using credit cards and look at how viable and costly this will be to use before you commit to anything.
Look for Hidden Costs
The quoted price for a project rarely covers everything involved. Delivery charges, installation fees, permits and the disposal of old materials can all add up separately from the headline figure, and they’re easier to overlook when comparing quotes side by side.
Ask directly what’s included and what isn’t before you sign anything so you can budget properly and get a better overall picture of the costs of moving forward. Also ask if the quote covers things going off plan or not, as you might end up having to pay more for things uncovered once work starts, like problems behind a wall or under flooring you won’t see until you come across them.
Build in a Contingency Fund
Even with a solid budget and a clear quote, things can still go wrong, and it’s always a good idea to expect the unexpected and plan for it rather than to hope things go right and run smoothly from beginning to end.
The answer here is to have a contingency budget for unexpected costs so you don’t end up getting derailed if they crop up. Ten to fifteen percent of the total budget usually covers this and means you don’t need to cut corners so drastically if you end up with costs you didn’t expect.
