Often, the first thing most homeowners do after moving into a new property is start thinking about remodeling with the help of Capital Construction Contracting Inc. One of the joys of purchasing a property is being able to decorate it to your taste, and most interior designers agree that a person’s home should be an extension of their personality. However, remodelling your home is about more than just picking out counter tops. Remodelling requires a carefully thought out budget that will ensure you get the best return on your investment and protect you from financial ruin. If you are planning to remodel part of your home in the near future, then the following guide will help you decide how much to spend.
Only Remodel When Necessary
Remodelling an entire kitchen just because you hate the previous owner’s choice of lime green cabinets and canary yellow worktops may be tempting, but it will not increase the value of your home should you decide to sell. Kitchens should only ever be completely remodelled if they are extremely old or poorly constructed and not just to improve their overall look. Start by choosing the parts of your home that are most in need of remodelling and slowly work your way around the rest of the property.
Be Realistic About Your Remodelling Requirements
One of the main problems interior designers face is matching a client’s expectations to their budget. Remodelling is an expensive process, and homeowners often fail to factor in all of the costs when choosing their new kitchen. As well as purchasing new fixtures and fittings, you will need to pay labour costs for your old kitchen to be ripped out and disposed of and for any water or electrical connections that have to be rerouted. Therefore, it is wise to let your designer or construction company know your budget restraints upfront so they can advise you on exactly how much the work will cost.
Plan For Contingencies
Jeffrey Veffer, owner of Incite Design, advises clients to subtract 20% of their budget and set it aside for any unplanned expenses that may crop up along the way. Remodelling projects often go way over budget even if homeowners think they have planned for everything beforehand. During the remodelling process you may discover a crack in the foundation of your home or a leaky pipe that needs to be taken care of before the work can continue. If you set a small amount of your initial budget aside for any problems, then you will hopefully stay within budget even if something goes wrong. Remodelling projects that start to spiral out of control once the work begins should be halted while you reconsider your options. Never be afraid to postpone remodelling work for the future if you simply don’t have the funds available.
Always Consider Return On Investment
According to Remodeling Magazine, the only home improvement that offers a 100% return on investment is the addition of a reinforced, steel entry door. Projects such as kitchen and bathroom remodelling or attic renovation rarely add much value to a house and should never be carried out in an effort to entice potential buyers. Even if you are not planning to move house in the near future, it is still wise to think about how much value your renovations will add to your home. Potential buyers often look for the same features when viewing homes such as a modern kitchen, en-suite bathroom or landscaped garden. For an idea of what sort of features will make your home more attractive to buyers, you can check out some of the properties at Entwistlegreen.co.uk. If you are planning to remodel your home in order to sell it, then be sure to stick to neutral décor throughout. Even though you might be a fan of bright colours and clashing prints, it could be enough to scare away any potential buyers.
If you wish to remodel part of your home but do not have several thousand pounds available to splurge, then there are a number of finance options that can help you manage the cost of remodelling. Home equity loans are a popular choice for those wishing to pay for expensive remodelling projects, or you could even consider taking out a second mortgage. If you do not feel comfortable using your home as security against a loan, then you may want to consider a contractor loan or talk to local lenders such as banks and building societies.
Oliver Corrigan is a budget-planner in his work and likes to apply his skills to managing the family finances. He also enjoys sharing his insights on balancing the books with an online audience and writes for a number of personal finance websites.