The last couple of years have taught us a number of things, with home renovations being at the top of this list for many people.
The effects of the pandemic meant that many people started to invest in their home. This wasn’t necessarily to directly increase its value and make a profit later down the line (although this is certainly happening as well based on the booming state of the market), but rather to enjoy the fruits of spending more time at home.
As the previous paragraph may have already suggested, striking a balance between personal preference and profitability can be tricky when it comes to renovations. Bearing this in mind, today’s guide will dive into the root of the issue and showcase some top tips.
Do your research!
If you’re turning to renovations in a bid to reap more value from your home, you need to understand your local market.
How much are nearby properties selling for? How do they compare to your home?
If you happen to be in a neighbourhood where there are no five-bedroom properties, striving to build an extension that incorporates this is unlikely to be a sound financial move. You’ll hit a ceiling price, and that extra bedroom won’t really add the value you were expecting.
Of course, if you’re doing it for your own needs and don’t have any plans to move anytime soon, this is another matter in its entirety.
Get a realistic idea of how much your renovation will cost. This includes both the labour and materials involved. It’s important to be upfront with your contractor about your budget and to stick to it.
At this point we need to reiterate the importance of obtaining quotes from several contractors. Even if you have commissioned an architect to assist with this, there’s every chance that these forecasts will be on the low side. By obtaining three quotes, you’ll reduce the risk of nasty, costly surprises down the road.
In addition, don’t just think about the direct costs. What if you need temporary accommodation while the works are completed? Or, what if you need to move your belongings to somewhere like Safestore to protect them? While small, all these indirect renovation costs can build up.
Think about the long-term
What kind of changes are you making to your home? Are they things you can live with for years to come, or are they more temporary? This is a really important question – and perhaps even more relevant in the current climate we find ourselves in.
For example, are you making the change to accommodate your current home working arrangements (i.e., are you thinking about a new home office?). If so, what is the true, long-term value for this? Are you expecting to work from home for the foreseeable future or could this be a prime example of doing things in the here and now, without thinking about what your long-term needs really will be.
Renovations can take longer than you expect, so be prepared to have some patience. This is especially important if you’re living in the home while the renovations are taking place. It can be a testing time for all, but the results will be worth it. The key is setting expectations accordingly so you can handle this potential stress.