Renovating a home is one of the most exciting time in one's life.

Whether it's a modest makeover or a complete renovation, we're looking forward to the dazzling new results.

However, as most of us have learned the hard way, several potential issues may come with house renovations.

This happens when homeowners embark on renovations with little prior research — on cost, design, or completion schedule.

Some people make the mistake of setting a budget that is too low and unrealistic, and even worse, they don't have any emergency funds in case the cost curve flattens.

This could leave you with not only an unfinished house, but also a financial setback, or worse, a huge debt.

Consider these tips when planning your renovation budget.

1. Shop Around For The Right Contractor

Contact at least two contractors to compare their bids, skills, expertise, and flexibility in doing your home renovations.

If you just speak with one contractor, you will have very little insight into what they are capable of doing with your home and will likely lose out on any value-added services that another contractor may be able to provide.

You'd have no idea if they're overcharging you!

If the home renovation contractor is as good as his sales presentation, ask for references and read 

reviews. Hiring an incompetent contractor might lead to costly blunders that you will have to pay for out of pocket.

2. Assess Your Budget & Personal Finances

Consider your overall financial state to see if you can afford to renovate your home in the first place, rather than just how much you want to spend on your makeover. 

Is it preferable to spend that money on your children's education or debt repayment?

If so, your kitchen expansion may most likely be postponed for a few more years.

Once you've determined that you can afford a renovation, have your contractor and interior designer estimate the whole cost of the project, including all renovation work and labour costs.

Add a 25% buffer to your estimated budget — you need to be realistic about your renovation having bumps, and most renovations do cost more than we think.

If a 25% buffer seems excessive on your tight budget, attempt to set aside at least an additional 10% to 15%.

Molek Regency

3. Consider Why You Want To Renovate

Do you wish to renovate for your comfort or as an investment?

When it comes to improving your home's comfort, you can do whatever you want (within limits, of course).

On the other hand, if you're renovating as an investment in your home, be objective while planning your makeover.

Your preference for bright, dramatic colours and contemporary lighting may differ from that of your buyer or tenant.

What matters most is that your home is tidy and attractive.

Extensions generally have extremely shaky returns, and their worth is also debatable.

In this case, talk to your interior designer, contractor, or architect about your best alternatives.

Don't forget to get approvals. Without necessary permissions, valuers will not include any renovation costs in their appraisal.

4. Next, Decide What You Want To Renovate

Be as specific as possible about the building and construction work you need to do – what colour scheme do you want for your bedroom, how do you want to refurbish your kitchen cabinets, what type of electrical wiring do you need for your new lighting, where will you get your tiles, fixtures, and building materials, and so on.

Consider not only the aesthetics of your renovation but also the goal of the project and if your selections will help you reach that goal.

Learn how much everything costs and who you'll need to contract to complete it. 

Make a choice and stick to it - changing your mind in the middle of a renovation will always cost you extra money and time.

Bungalow Presint Kebaya Taman 1 Krubong

In Closing

House renovations can be time-consuming and costly, with a lot of things that might go wrong in the process.

You can avoid major cash leaks in your renovation budget if you plan well from the outset. 

Choosing wisely when selecting a home renovation contractor and planning your design modifications can help you save a lot of money.

Consider doing basic items like bookshelves and little painting yourself.

You could make it a family project so you can spend valuable time together.