Managing your renovation budget when designing requires discipline and understanding how to best invest.

Learn the critical factors that matter as we talk with HOME Method member, Ben, about the renovation and extension of a 1920’s Californian Bungalow in Melbourne.

Listen to the episode now.

Hello! This is Episode 353, and it’s Part 2 of my conversation with HOME Method member, Ben, about the renovation and extension of his and his partner’s 1920’s Californian Bungalow in Melbourne.

If you haven’t listened to Part 1 yet, head to Episode 352 where you’ll hear Ben introduce us to the project. We discussed some of the early challenges as they worked with a designer for some time, but ended up with a design that was over their budget, and also not the ideal outcome they were seeking. 

With those initial quotes coming in too high, it gave them the chance to revisit and review their progress to that point, and led to a redesign that resulted in a far more aligned design outcome. 

As we jump into Part 2, I talk more with Ben about their budget, and how they’ve worked with it over these design changes and the timeline, as well as the way Ben and Mike are now viewing their investment and what they want to get from it.

LISTEN TO THE EPISODE NOW.

In this Episode (Part 2), we also talk about working with your professionals, creating a collaborative team, and having those challenging conversations as your project develops and perhaps isn’t on track with your overall goals.

And Ben has some great insights to share on the emotional side of navigating a project like this, and we hear how he’s built his confidence over the duration of the design process. Plus he touches on the value of community support and technical resources from HOME Method.

Far too often I see homeowners stay attached to their home design purely because they feel they’ve come too far. They place all sorts of self-imposed constraints on themselves that keep them chained to a less-than-ideal option. 

And whilst I know it can be super challenging to decide whether to change direction when you’ve spent money and time arriving at this point in your project, it’s always worth remembering:

• Change is cheap whilst your home is lines on a page
• The money spent in design is considerably less than the money you’ll be spending on constructing it
• And the time spent in design is considerably less than the time you’ll be living with the consequences.

Often people tell me … we’ve come too far now, and don’t want to go back to square one. However, my hope is that, in hearing Ben’s conversation, you can see another perspective. That no effort in your project is wasted, that sometimes you have to step some of the way to get true clarity in what’s going to work for you, and that when you do make the call to pivot, you can often mobilise far faster and lose very little time as a result.

As you’ll hear in my conversation with Ben, I find it fascinating to hear and share the individual stories of our HOME Method members, because each of them embrace their journey in their own way. They may follow the steps, they may not, they can apply the content in differing ways, they can have varying priorities and also their own skills and attitudes that they bring to the project as well. 

I hope you find it fascinating to hear these stories too, and learn all the unique ways we make our homes our own, even though they all follow the same steps to go from dreams to done.

Now, let’s dive in!

This is the transcript of my conversation with Ben about managing their renovation budget when designing, and optimising what they’re getting for their investment.

Amelia Lee
I love the design that you’ve both come up with where you’re at now. It’s really efficient. Whenever I look at a plan and it feels clean, and by clean I mean it feels really well ordered I know that circulation is going to occur through it in a very rational way, the house reveals itself in terms of that compression to expansion of the California bungalow sleeping zones through to the expansion of the rear pavilion, and then the connection with outdoors and the way that the alfresco area works, the maximisation of the orientation, you’re going to get good sunlight because it’s pulled back, it’s a smaller footprint. So you’re not having to be as impacted by the neighbour. You’re not squeezing it around the back. Actually, I look at it and go, this all happened for a reason, because what you’ve ended up with is going to be a fantastic home. And I think too, the way that the design connects to the existing house, with the threshold zone and all of that, is going to enable a lot simpler construction process as well. So there’s something really lovely, and it’s why I teach that method of those bolt on extensions, of how you help the home tell a new story of its new, reinvigorated life. 

And that you don’t try and seamlessly connect it or integrate it with the existing architecture, but that you let it be an expression of a new connection and a new form, and then that frees you up to be putting in much more standardised materials and a faster construction method and all of that kind of stuff. And I can see all of that coming to play in how this extension is working with the existing home.

Ben
Thanks. And the other point that I think we’re proud of is we challenged ourselves to work the existing house a lot harder. And some of it was, like necessity is the mother of invention, I guess they say, but yeah, because we did need to reduce cost. Well, what are we changing in the existing home that we don’t have to, or just how could we achieve that objective in a more cost effective way? And, I think we’re proud that we were able to do that. And there’s one new wall and not five new walls, and the demolition extends a lot less. And then that also speaks to the integrity of the existing house, and it really will then, even more, provide, I guess, that point of difference, and respecting the existing home and its architecture and still having that modern pleasant experience.

Amelia Lee
Yeah, and also mitigating the risks of what might happen when you start to pull apart an existing home to then try and insert a whole heap of new construction in it. You’re radically reducing that by only having minimal input or change to the existing home too. So, yeah, I love it. I think it’s worked out so well. I’m hoping that it’s encouraging for people to hear. 

I get so many emails from homeowners who say, I’m not in HOME Method, I’ve been listening to your podcast, I’ve been working on this design for 18 months, I’ve lost trust in my designer. I’m not sure if the design is working. I don’t know what to do next, but we’ve already come this far. We’ve got a builder on board who can start in three months’ time. It’s going to cost us a lot more than we wanted to spend, but I feel that we should just keep going. And it is that ,people do fall into that trap of just feeling like I’m on this train and I’ve just got to keep going.

Ben
We almost did, yes.

Amelia Lee
And so, it does take a lot to make that call to arrest that very strong momentum. And I love how much you’ve turned this project around in that regard. So, I’m hoping that others are listening to this, going, “Oh okay, maybe I need to get back up to helicopter view. I need to think about this. I need to test the feasibility of these ideas, really make sure. If I’m only going to do this once, that I’m actually going to end up with the house that suits us, and that suits us in all of the ways, not just in terms of what we’ve come up with to date.”

Ben
Yeah, you’re not a failure if you decide to either go in a different direction or reconsider something that you did before. I think that’s a really important mentality to adopt.

Amelia Lee
I love it, Ben. Can you talk about your budget through all of this, how you’ve navigated your budget and your thoughts on your projects, Ben? Because you have been doing this for a while, I imagine that your budget’s potentially had to move a little bit. Like, what’s that process involved?

Ben
It has been. So, there were almost three different budget phases. I’d say there was that highly optimistic, when we were purchasing this home. What might we be able to achieve with a certain amount of funds? And that was in 2021, really, before the true extent of building cost rises was known. And then, as we continued through, like listening to the podcast, actually, and being part of HOME Method, acknowledging that we might be underestimating our budget a bit. Like, that actually helped us set our expectations a bit higher. But we were still, in a way, because we weren’t talking to builders, we were flying blind a little bit. And then, being fortunate to making a gain in our last house, and say, “All right, we’re going to put this into this one.” We set different tiers of budget. Like, we set a certain amount for what it’s going to cost to build, but then also fit out, because the last thing that we wanted was a big, empty house with no furniture in it or no landscaping. Because the outdoors were important, and the connection, and visualising that and seeing the outdoors from inside, the landscape was going to be important. And then set those tiers of budget. 

However, we still got the quotes back at the end of last year that were far and above where we needed to be. And then it was a question again, it’s that question, do you find even more money or do you really start thinking hard? And I mean, sometimes an easy thing to do can be you ask yourself, “What if you just didn’t do it? What if you just walk away?” And it’s like, maybe we’re also at this stage for a reason. And it depends on the person, part of enjoyment of life is travel and spending time with people. How much time do you spend at home? Like, a lot. And as I get older, I spend more time at home. And having that really pleasant experience, that is actually a priority. So, we are going to spend an amount of money, go forward with the project, but just make it as smart as possible. 

But then, also, that caused us to, I think, recommit to a budget even more, knowing that we weren’t willing to go up again. Then having a conversation with the two builders that we’re trying to decide between, that this is our budget. Like, this is our budget, we’re holding something back. Like, this is how much we’re willing to spend, and it has to fit within here, otherwise we’re not doing it. And I think that helped. Builders helped the designer in a way, but also, just really helped us, just that, “Oh, why not just add this little thing?” Like, enough of that. That’s gone. We’re going to make these really good decisions, and we’re not going to spend the least that we could, but we’re not going to spend the most. And it’s really, I think, about optimising the budget that you’re willing to spend.

Amelia Lee
Aww, Ben, music to my ears, mate. Because I think this is the challenge, is that people look at their budgets as a ceiling, rather than understanding that it’s the investment that paves the road to not only the home, but then the life that you get to lead in it. And it’s got to support what you’re delivering, but then also your ability to do other things in your life. And so, that rational observation, having a conversation with one of our other members, Sophie, who’s done the California bungalow renovation in Perth, and she finished last year, and she started unidentifying – she’s a medical specialist – and so how many extra shifts would she have to do to pay for the thing? And for her, it was a really great metric for her to assess, was it of value to her? And for you to identify that this is actually about we’ve got this amount, we’ve got this bucket of money, what is the biggest impact that we can make with this bucket of money? So that we can start making really strong value-based decisions that align with our goals, align with the life that we want to lead, and not just what we want to have in our home, but then what we want to be able to do with the life that we’re living in this home and beyond this home? 

And I know that there was some uncomfortable adjustments on that budget during that time when you did get those reality checks, which can be really confronting. Some people get really frustrated by that. Your ability to just be presented with the information, treat it as data, and then figure out what you needed to do, was always really admirable. There’s been the immediate, I think, response that has an emotional level to it, because it’s your home and it’s personal, and it’s your finances and all that kind of stuff, but what you’ve been able to do… Even just, I’ve noticed, when you’ve asked a question in the group that there’s been an element of a lack of certainty and then you get that piece of advice, you get that piece of feedback, you’re very quickly able to turn it around and start then taking the next step. And so, it’s been really great to see that. And I think your mindset about all of this has really supported you to take those actions in your project, so it’s definitely commendable. 

We’ve talked a little bit, I suppose, about how that process of the redesign happened, and how it reordered things for you, and also that it’s ended up being a good outcome. I’m wondering if we can just talk a little bit about if you’re going to give some more advice to people who might be in the same position as you, where they’re looking at a design that’s got away from them, they can’t afford to build it, they are trying to figure out, can they find more money to do it… What did that whole assessment of what was available to you in all the choices that you were needed to make next to figure out if this project was going to happen or not, help you do in terms of getting clarity about where you were going to go next?

Ben
I’d say the most important thing in undertaking that evaluation was feeling sufficiently educated to make that decision, and how can I, and it goes back to that word optimising, how can I get the most for the least, really, within reason? And most isn’t just about quantity. It is about quality and quality of experience, quality materials, etc. How can we get the most for the least, and what drives the cost? 

I think that was a key part of podcast listening and research and HOME Method and hearing from other people, understanding what components, or the way that you make decisions, or the way that you include things, or the sizes of things, how that’s going to impact on your project so you can make those informed decisions. Because going through that first design, you will say yes and no to things, but won’t really know what that means in terms of budget. So, understanding some of the biggest drivers really helped us evaluate. We could better then sit there and evaluate what we wanted to include and not.

Amelia Lee
I remember there being a point where you were, I suppose, having a bit of push and pull with your designer, and really trying to work out, “How far do we keep trying to push it in this relationship? Do we need to look at developing another relationship? How did you find finding your voice in that process, and figuring out how you were actually going to navigate making this happen and making some of those harder decisions about shifting the direction of the project overall?

Ben
There was a point where we found ourselves, I’d probably say, frustrated. Because we felt that the communication between us and the designer isn’t where we wanted it to be, or where it had been originally, and just bit of frustration in terms of not knowing how to navigate that. Is it something that you work through? Is there some other way? Have we been going down the right road? And asking yourself, what do you actually do about this? 

But reflecting on that time, it really just became so emotional for us, because whether you felt like you weren’t being listened to, or whether you weren’t communicating properly, or you set expectations the wrong way, it becomes this big, just emotional zone where it’s hard to think straight. And what helped us through, I think, is thinking through that feedback, from whether it was other group members or other people, about really trying to clarify what you wanted. But being able to have a professional conversation with a professional, and about what you wanted to do and the way that you wanted to move forward, and having those tools, almost like a hand out of your current mindset, to be able to at least rise above some of those feelings for a period of time, to be able to then start on a different path, whatever that path might be. And even though I might have been skeptical about how we were going to be able to navigate it, to the designer’s credit, like, they met us where we took the conversation to. And we were able to then plan a trajectory for moving forward with the project that has been beneficial. And they have been very helpful and responsive. 

It is a different relationship and a different engagement than we did last time, but each party knowing the other one, to be able to do that. So, the relationship that you’re in might not be the right one. I guess this goes for a lot of things, right? But your relationships are work, right? So, you have to tend to it. And sometimes things go off track. They might not succeed in the end, but at least give it a chance to be on the right track, and maybe the relationship will look a little bit different, but that’s okay.

Amelia Lee
That’s fantastic, Ben. It was really amazing to observe that. And also, I love that you touched on how you can feel really emotional in those moments, and so having the tools and the ability to pull yourself out of that so that you can try and make more informed, objective decisions, it’s one of the biggest challenges, I think, when you’re doing your own project. I know, as an architect, I can always do it for clients like that. When it’s our own projects, it’s always much more challenging. It always feels so much more momentous. And so I love that you shared your experience with that, because I know that’s going to be super helpful for people listening. Now, your builder selection process, you mentioned that you didn’t do the PAC process, but you’ve been in conversations with various builders at different times, looking at how this project is prized, how it’s going to be constructed, and getting input in different models. Can you talk through some of that builder selection process, and what that’s been like through your design phase, particularly in the iterations of the project.

Ben
Sure. I think we started communicating with builders, initially, in the lead up to that first design formal tender process. We’re trying to find personal recommendations and recommendations for the designer. The designers encourage us to go both inside and outside for advice. And using the interview questions in the program were very helpful, and also engaging how questions were reacted to, and then actually even going through that tender process, and then negotiation afterwards. That ended up being a huge part of the builder relationship, and understanding, not just how each person was navigating the questions and the discussions, but it reveals what someone’s approach is, their level of expertise, the way they engage, their level of responsiveness. And because we’re now an entire year later, we have actually quite a lengthy relationship with two of the potential builders. So that says a lot, too. And to both of their credit, they’re people that we’d really like to work with. 

And now, having gone through this redesign process and finally taking the advice to, not just engage a builder throughout this process, but use the magic of the multi professional input at the same time. Like, now I get it how it’s the designer and the engineer and the energy and the builder. Well, they play off each other. They all have different ideas. There’s all the what ifs, like, maybe if we did it that way, did you think about this? That’s my favorite. And, it’s so much more than the sum of its parts. And not only do you get the good advice, but I think probably that feeds into the confidence. I mean, I don’t want to be overconfident at all, but that does feed into, I think, the homeowner’s level of confidence that you aren’t carrying something through one to the next. And I think something you said the other week, like, if you’re just going sequentially, you really do have to bring almost everything, and all the rationale from one person to the next. And that is so true. And that’s how we felt the first time. 

Going through this the second time is almost like it’s being able to do a whole nother renovation without having spent the hundreds of thousands of dollars and learning the lessons that way, like we learned the lessons. Yeah, it costs a bit of money, but it costs, ultimately, less than, I guess, doing something that wouldn’t have worked out that well for us. So having that engagement now at the very pointy of end, being able to feed builder input back to the engineers and then back to the designers, and it flowing back out the other way is really something great to see. And I think it’s going to make for a better home and just greater satisfaction.

Amelia Lee
Yeah, I’m interested to see, when you get down to the pointy end, how you’re going to make a choice between the two that you’ve been in long conversation with. Want to work together? We like both of you.

Ben
To both of their credit, they’re terrific professionals and really great people.

Amelia Lee
Yeah, and it’s that multi disciplinary approach during the design phase really does elevate when those professionals are behaving the way that they should, and they’re providing the input that they can and collaborating effectively, it really does make a significant difference too, that the best being adopted as you navigate. And that optimisation that you’ve been seeking, that really does come through that multidisciplinary approach. Now, this project’s taken longer than you anticipated. You touched on the fact earlier that you just think about it being 12 months, not 3 years, and you just jump in. How have you been feeling about it like, in terms of it taking a little bit longer? And what’s that been like for you as you’ve navigated it together?

Ben
That’s probably also been in a few phases. The most difficult stages is when either you feel like you’re in analysis paralysis, or I’m starting with the next but have failed because things aren’t on track the way that you thought they were going to be. We originally went through this design with really wanting to tie down as many details as possible, and really understood that that would probably take a bit longer. And the designers were very accommodating of that, answered a lot of questions, undertook a lot of revisions, and the time just started extending beyond what we thought it was originally. 

And then, as much as it is okay, I think, to take more time, giving yourself unlimited time can be a little bit demotivating. And you need to set a goal for yourself. And decisions do need to be made, and sometimes the easiest thing is to not make a decision. So, how do you make a decision? Besides using your brief, but how do you use communication with your team, with your partner, whoever you’re making a decision with on this project, about how you’re going to go ahead, and then being okay when things don’t feel great and it’s feeling off track or why did I do this? Again, it’s going to be an emotional dip, but you will get past it. You’ve been all the way through here, there’s a way. So many people have done this before, people with less knowledge, people with less capability. You got to tell yourself that you’re able to do this, and then just strike that balance between being able to make decisions not going back. 

Mike is captain of shutting down what ifs. There’s no what ifs allowed in this house. So don’t do that. Don’t do it. Don’t compare yourself against other people. And knowing that it’s not going to be all one thing or the other, and you will have to balance a range of emotions and sometimes push yourself.

Amelia Lee
Yeah, I love that, Mike is captain of shutting down what ifs. My husband, anytime I begin the sentence with “I wonder”, I just get an eye roll. It’s very similar. Thank you for sharing that, because I know that that’s going to also be helpful for people. I think you’ve got a lovely mindfulness about how you’re navigating this project, and a lovely self awareness that I know is paying dividends for you in how you’re showing up in your project. We talk a lot about how you show up in your project is how you show up in your life, and vice versa. And that thing about making no decision, when you make no decision, that’s still a decision. So, I think that having that kindness with yourself is super important as well. 

Now, just before we wrap up, I’d love to know, because you have dived into HOME Method, into the community, we’ve had a couple of one-to-one Zoom sessions as well to look over your design and have general conversations about things. You’ve really embraced the resources and the learning, and I think, done an incredible job with how you’ve approached your self education through this process. So, I’m curious if you can tell us how you feel that’s actually supported your journey and your project. And, I suppose, what’s been helpful for you in that regard, having access to that community and the Q & A’s and all of those kinds of things.

Ben
There’s actually been two ways. I mean, I’d say both on a technical level and an emotional level. What we were just talking about, being able to have that self reflection or perspective about the project, a lot of that is really built on understanding other people’s experiences. It’s not that you’re just not alone, but like, there are people who are going through the exact same things. Even if you’re a beginner in your project, there’s still people who are in earlier stages than you, and you’re like, “I got through that, and this next thing that seems impossible, I’m willing to get through that too.” Because that builds your self confidence. But then, people who are even further along in their projects, being able to reflect their experiences, provide advice. And whether it’s the same the way you would see something or not, sometimes it is the same way you see something and you can learn that way or proceed that way. But sometimes, people have a different perspective and navigate something else. And that also tells you something, because there’s different ways to go about something. It’s okay to do things your way if you want to, and it’s okay to do things another way if somebody else does. So, having that reflection. 

And then also, there’s people with so much technical knowledge who are gracious in terms of sharing, answering questions, providing unsolicited feedback is incredible gratitude. And then, to almost wrap it all up, we all, in a away, seek community and belonging. Just to have another group of people, that just feels good and helps you get through something. Actually, we’ve all signed up for this, and it’s pretty challenging. So, to have that helpfulness, I definitely appreciate it.

Amelia Lee
Yeah, that’s awesome. Have you found that you’ve used the checklists and the templates very much as you’ve navigated the project?

Ben
Yeah, the room notes, that’s amazing. The interview things, the best. Being able to go through everything and learn the steps, A to Z, front to back, back to front, is great. But then, having things to refer back to, even though it’s maybe the fourth time we’ve gone to a resource, it’s like, now I understand this. So, now I need it even more. So, it’s actually layers of helpfulness throughout what, for many people, is a very lengthy endeavor.

Amelia Lee
Thank you for talking about that, because I think it’s really helpful for people to see. I find that everybody uses HOME Method differently. And so, I love hearing how you’ve tapped into the resources. And some members are quite quiet in their use, we know that they’re a member, we don’t see them talking in the Facebook community, but we know they’re there, and they’re often visiting the Q and A’s and those kinds of things, and we see their usership. And then there’s other community members, like yourself, and we’ve got some other amazing members that are very sharing a lot of the progress of their project and really connecting with each other. And so, that myriad of experience that people have inside that community and inside that program is always fascinating to me, to see how it gets used differently by everyone. Before we wrap up, is there anything else that you wanted to share?

Ben
Probably two things. Number one, you can do it. It is challenging, but it’s worth it. And the other thing is, I think I got this from another HOME Method member, but giving yourself permission to have something nice. Like, do you need some of these things? No. But do you want some of these things? Yes. And we all have different priorities, different preferences, and giving yourself that permission, I think, it’s really a wonderful thing.

Amelia Lee
That’s awesome, Ben. I’m looking forward to checking in with you again as you keep moving and making progress on your project. We’re recording this at the beginning of November. You mentioned to me before we jumped on that you’re trying to get a bunch of stuff done before Christmas and all of the shutdowns, so that you can set yourself up well for 2025 and construction. And so, I’m really excited to see what next year holds for you both as you make this project a reality. Can’t wait to have a front row seat to it, and hopefully get you back on the podcast, have a bit of an update about where you’re at. So thanks so much for your time, Ben, it’s been really great to chat with you.

Ben
Yeah, thank you, and thanks for all your help throughout our project journey.

Amelia Lee
Ah, that’s my pleasure. It’s been awesome.

RESOURCES: 

How to Consider Resale when Designing Your Home >>> https://undercoverarchitect.com/podcast-considering-resale-value-when-designing-your-home/

Season 13 Episode 7 ‘Ended up with a home design you DON’T love? How to get unstuck and take action’ >>> https://undercoverarchitect.com/podcast-get-unstuck-designing-building-renovating/ 

Access the support and guidance you need (like Ben) to be confident and empowered when renovating and building your family home inside my flagship online program, HOME METHOD >>> https://undercoverarchitect.com/courses/the-home-method/

Learn more about how to interview and select the right builder with the Choose Your Builder mini-course >>> https://undercoverarchitect.com/courses/choose-your-builder 

Access my free online workshop “Your Project Plan” >>> https://undercoverarchitect.com/projectplan