Tips on how to budget a home renovation

Tips on how to budget a home renovation

You probably know by know the Purchase Plus Improvements Program allows qualified purchasers to borrow up to 20% of the post-renovation value of a home, even with as little as 5% down. However, some planning still needs to be done before you venture into this renovation adventure. Here are some tips to keep in mind.

Get the “numbers”

Before you even start contacting contractors, find out how much your renovation is going to cost.  See our previous post on renovation costs. You need to make a list of all the expenses involved – materials, fixtures, drywall, insulation… 

Make a list

What is it that you want to exactly do? How much do you want to or can spend on this renovation? This is where the expert opinion comes in. By getting the numbers, you now have a realistic picture of what you can do based on your budget. So, make a list, in point form, of every little thing involved in this renovation: all the costs, all the materials, all the fees, and so on. 

Prepare for surprises

Once you have an idea of how much your renovation is going to cost you, put aside about 20 percent of your budget for surprise costs. You never know what the contractor is going to find behind your walls – there could be some damage that was not expected, and so not accounted for. If there are no surprises, you end up with some extra cash. 

Don’t just rely on the contractor’s estimate

Again, do your research. The contractor will put a line on the estimate that included “undetermined” costs. Know the costs of everything you want to make sure you have enough money.  Set priorities and work the project to fit your budget. Don’t get carried away with the latest trends.