What are the main areas that can blow out budgets in a reno or new build? Where money disappears in a project? And how can you manage the risk to your budget overall?
There are 4 main areas I see trip up homeowners. They can take big chunks of your budget, but seem almost invisible in your home.
Here, I share what they are, and how to protect your budget as you manage these areas.
As you begin to design and plan your new home or renovation, chances are you’ll be:
- looking at the spaces you want to create
- how you want to wrap them up (their size, shape, etc )
- and what you want to put in them (finishes, fixtures, furnishings, etc)
When you start to allocate your budget to these dreamed and imagined spaces, finishes and fixtures, it can be a surprise to see how quickly it gets consumed.
And often, in my experience, the reaction can often be “But where is all the money going?”
There are many things required to create a working, finished new or renovated home, and they can chew up a significant chunk of your budget – and yet be almost invisible in the finished product.
So in this episode, we go through the main areas where money can disappear in any project, so you can manage them in yours. I share the main hazards to be aware of, and how you can protect your budget in each of these areas.
Of course, the ones I’m listing here are not exhaustive – the best way to manage your budget is to manage all of it!
However, I’ve seen these areas regularly surprise homeowners, and end up costing them far more than they intended.
I take you through 4 main areas that can swallow your budget for a seemingly invisible result. I also share key tips to help you protect your budget in these areas – and overall.
- Money gobbler 1: Services (especially electrical and plumbing)
- Money gobbler 2: Excavation and retaining
- Money gobbler 3: Your home’s skeleton (the structure)
- Money gobbler 4: Extra living expenses during your project
And one last word on this …
I see some homeowners behave like it’s a foregone conclusion that their project will blow budget and timelines. Renovating and building doesn’t have to be that way.
The renovating and building journey is not a one-step process. It’s a step-by-step journey of discovery and selection. Sometimes you only have 2 options. Sometimes you have 200. Sometimes you may feel like you’re crawling, and at other times it feels like big jumps towards the finish line.
The most straight-forward way to avoid nasty surprises on your reno or new home journey is to start with good information and a reliable team. Then you can also work to make informed choices as you go. Checking and adjusting along the way.
What did we say in an earlier episode? ADAPT AND INNOVATE!!
Revisiting your design, your budget and your timeline at each of these stages will help you do this, and make the best choices for you … your budget, your site and your life.
Ultimately, that’s the way you create the perfect home for you.
Listen to the podcast now to learn more about these 4 main areas, and how to protect your budget, and manage your risk overall.
This is the last episode of Season 3 – How to Set (and Stay on) Your Budget. If you haven’t, head back to listen to the whole season. I hope you find it super helpful in setting your budget, and staying on track with your budget overall.
The cost of renovating and building your home is one key area of stress, and blowing budgets is a main source of fear.
Getting the information you need to manage this area is a great way to feel more confident about your project overall.
This season, Undercover Architect has a podcast partner: Kiiko LED.
Kiiko LED is customisable, DIY, LED strip lighting, that you can order online to your specifications, for your needs and project.
Kiiko LED is founded by Craig Thomas, who I’ve personally had the pleasure of working with for over 12 years now, in my own projects, and in client projects.
And so I’ve been able to organise with Kiiko a fantastic UA Community only offer. If you head to their website at www.kiiko.com.au/undercoverarchitect you’ll be able to access a $25 discount to use on your first order.
Check it out, and start building your Kiiko LED strip lighting now!