Although my full-time job is doing home inspections, part of the reason I got into this business is because of my passion for construction and renovation. If you’re on a budget but want a beautiful home, I have some tips to help.
1. Buy your home right – Use a Realtor. Realtors are professionals that can get you the information needed to make an informed decision: comparable prices, neighborhood trends, housing market conditions and more.
2. Get a home inspection – If you have dreams of a magazine cover-worthy kitchen but your roof is leaking and foundation has structural issues, those items will have to be tackled first. A home inspection will give you the full story of what’s going on so you can budget appropriately.
3. Make a Plan – It’s rare that you can accomplish everything at once, especially if you’re the one putting in the sweat equity. Determine your priorities and budget around that. Do you want the Kitchen done first? Figure out how much it will cost and what that means for the other projects you want to do.
4. Talk to your mortgage broker for financing options – a “purchase plus improvements” mortgage is available to tackle renovations as soon as you purchase your home. Those costs are added to your mortgage. On many renovation projects, that money can mean an instant return on your investment. A home equity line of credit is an option if you have some equity already built up in your home.
5. Be patient, look for sales – This comes down to planning. Retailers all have great sales from time to time saving upwards of 30% on the materials for your renovation. If you can buy your kitchen cabinets when they go on sale and store them until you’re ready to renovate, consider that 30% on $10k of cabinets is $3,000 savings!
6. Get the retailers to finance your reno – All the big stores want your business. Most have credit card terms that allow you to put off interest charges for up to a year on large purchases allowing you to spread out the payments. Be careful here; if you don’t pay by the end of that interest-free period, interest charges can be VERY high (like 28% or more)
7. Get permits where required and hire a professional for work you can’t do on your own – Your renovation won’t give you any return on investment if the work isn’t done properly. Know when to call in the pro’s (plumbing, electrical, structural)
8. Expect the unexpected – Even the professionals have contingencies. You may have to relocate plumbing, HVAC, or electrical once you open up that wall or even fix mistakes from previous renovations.
9. Consider energy savings, not just the looks – If you’re opening up walls, it’s a good time to add insulation. If you’re doing work from the attic, consider adding insulation there too. How are the windows and doors? While you’re doing the renovation may be the best time to address those areas.
10. Get a couple’s therapist! – They call it divorce dust for a reason. A renovation can easily go from a fun weekend project to a months long endeavour. Make sure you and the rest of your family know what you’re getting yourselves into. Consider staying somewhere while the renovations are taking place.