Whether you’re planning to renovate a house so that you can move into it, or are hoping to be able to sell it in on and make a profit, there are some things you need to do before you get started.
Planning carefully can make the difference between your house renovation going broadly to plan, and it costing you considerably more than you’d envisaged, as well as being more stressful and challenging than you’d hoped.
The first thing to get in order is your budget. Know how much you can afford to spend and plan the work you’re doing around that. Think about whether there are any ‘nice-to-haves’ that you can compromise on if essential works go over-budget.
Make sure you allow for more than the bare minimum to cover costs too. This will mean that you can deal with any unexpected issues (hopefully) and if none of those crop up, you’ll have a bit of extra cash to spend on any finishing touches, so it’s win-win.
A recent article for Your Money explained that if you’re buying a property with the intention of flipping it quickly for a profit, that the key is to buy smart. Do your research about your chosen area and calculate how much profit is in a renovation before you commit.
Make sure you don’t forget to budget for all the costs you’ll need to pay out for when you start this kind of project. The news provider notes that you should factor in architects’ fees (if you’re changing anything structural) and building fees, as well as stamp duty, interest on your mortgage and potentially capital gains tax when you sell.
Peninsula News Review recently also pointed out the importance of factoring in waste removal, or tipping costs.
Depending on the house, this could include specialist services to remove materials like asbestos, as well as to make sure that other materials like metals are properly separated to be recycled. You may also have to pay for skip hire, so don’t forget these expenses when you’re working out your budget.
While disposing of your waste yourself might seem like a better option, consider whether you’ve got the right kind of vehicle for taking large loads of rubbish to the tip, and also how far it is to your nearest tip. When you factor in the time it’ll take you and the hassle, you’re probably better off paying for a professional company to come in and take care of it.
Last year, research from Direct Line Home Insurance revealed just how much value different renovations can add to the price of a property.
Reporting on the research Moneywise noted that homeowners can add nearly £10,000 to the value of their home by redecorating every room before putting it on the market. Similarly, renovating the kitchen can add just over £9,000 to the value of a property.
Ask any interior designer and they will confirm that the importance of lighting can never be overlooked when it comes to redesigning any home. Whether you hire a designer or plan to do much of the work yourself, lighting should never be an afterthought in your renovation. One of the most common mistakes is extremely bright lighting which can make the spaces seem overly clinical. Instead try opting for warm and balanced lighting, particularly in your more homely rooms, adding a classic touch with traditional style light fittings.
Replacing the bathroom, renovating original features and refurbishing the exterior of a property were other projects worth carrying out if you want to boost the amount you can ask for when selling a house, the news provider noted.