In This Article:
If you're a first-time home renovator there are several aspects to consider, from managing projects to keeping on top of the finances.
Mistakes can prove costly, so if you’re considering getting any work done on the house, here are some things that you should avoid.
Your budget isn’t just about what you can afford
You need to consider what you can afford, and then what work you can do with that money. However, you also need to think whether you will have added enough value to make it worthwhile.
If you add up what the property was worth when you bought it and what you spend on the renovation and end up with roughly the value of the property now, you may have wasted everything you gained as the property's price appreciated.
If it’s your forever home, it doesn’t matter, but life can be unpredictable so it's worth considering how much value you're adding.
Do all the research into costs up front
In order to control the costs, it's a good idea to get several quotes. Instead of going with the cheapest, it can be a good idea to pick a company that costs everything clearly, and factors everything in at the outset, so you don't get a cheap quote with a bunch of expensive extras further down the line.
Read more: How higher house prices are impacting young people's finances
However, there are things that will be costed up separately, and you need to properly investigate them. For example, if you're having major work done and need to move out and rent somewhere else for a while, remember that the average local rental cost when you first apply for planning permission may not be the same as when it actually comes to moving out.
Never underestimate the power of VAT
In everyday life, any VAT is always included when we buy things, so we’re very used to the price we’re quoted including the tax.
In the building world, quotes are often excluding VAT and you need to add another 20% on top. It’s vital to check this when you’re looking at quotes, so you appreciate the full cost.
It’s also important to bear the psychological impact in mind. Because we are so used to seeing the price including any tax, it’s easy to have the ex-VAT price imprinted on your mind when you’re doing rough and ready calculations. It can help to cross out any ex-VAT prices and highlight the real price, so it’s this that sticks in your mind.
Don’t get pushed around
You don't have to go with every solution suggested by contractors or salespeople — even if it seems like the answer to your problem, it may end up being a lot more expensive.