How to Create a Top-Notch Home Renovation Budget

How to Create a Top-Notch Home Renovation BudgetBudget. The six-letter word that seems to fit into the four-letter word category, right? The word that you whisper with an annoyed face and then shove into the back of your mind and to the bottom of your to-do list. Unfortunately, though that annoyed face is warranted in many cases, that doesn’t make budgeting any less necessary. Our last post on the Restumping Melbourne blog focused on one of the most important line items that belong in a home renovation budget, no matter if you’re planning to renovate your existing home, or just buy a whole new one. We’re talking about home inspections. Remember, home inspections are one of those costs that may seem like a lot of money upfront, but can save you a ton of money later on down the line.

Posts like this last one inspired us. It got the team here at Restumping Melbourne thinking, “what is the sweet spot, the right number to shoot for when you’re first building your home renovation budget?” We’ve already confirmed that NOT designing a budget is off the table. So instead, let’s cover off the categories and specific line items that make sense. Bonus points if you can get a little bit excited about them! This is the first in a series of posts, so sit back and enjoy the ride!

There are two things that you’ll need to identify and memorize, right off the bat. These are- 1) the total amount of money that you have to spend, and 2) the size of the property. These two variables play into every equation necessary to building your home renovation budget.

Before you can evenly split your total budget, by the square footage of your property, you’ll need to think through variables like unavoidable costs and rainy day funds. These are areas of the home renovation budget, which are untouchable, no matter what. You’ll be very grateful that you have every penny, when unexpected repairs or maintenance show up on your calendar (or even worse- don’t!) Make sure that you keep this money out of your reach- even if that means digging out that old piggybank, from your childhood days.

You may be wondering exactly how much money to set aside in either of these. First up, let’s cover your rainy day fund. Luckily, we live in the Information Age. There are awesome resources all over the internet, some even equipped with custom calendars, which can help you determine the right amount for you.

Next- when it comes to unavoidable costs, we recommend that you tap into whichever company or individual that helped you procure your home. If you worked with a realtor or a broker, they’ll be a great resource to make recommendations. If you worked with a rental agency, they should be able to not only assist with costs related to the property, but any that are related to the surrounding neighborhood.

Bottom line, if you stick with Restumping Melbourne- the ride ahead as we create a top-notch home renovation budget for you, will be smooth sailing. Stay tuned for more information ahead.