How to Cut Costs While Renovating Property

Property renovation becomes a necessity if it has to be sold, rented out or even lived in, especially if it is old and has been neglected for a few years. Any recently purchased property will also require some modernization and renovation to meet the residents’ needs and appeal to their tastes. But renovation can cost a lot of money, and property owners can easily get carried away without realizing how much they have spent. As a rule, renovations must not exceed 5% of the property price.

However, it is possible to limit and cut costs while renovating property, and that too, without compromising on quality or aesthetics of the property. Even in lesser amounts it may be possible to do as good a job of renovation, by avoiding wastage and re-using whatever is in good condition. In fact, there are numerous ways of cutting costs, some of which are discussed below.

How to cut costs

  • Make a list of renovations and the expected expense involved- At the outset, a list needs to be drawn for the renovations necessary. Against each of these, it is preferable to seek advice and get a quote about the expense anticipated. This helps to cut frivolous and unnecessary changes.
  • Set a budgetary limit- Based on the list and expenses anticipated, it is possible to decide on a budgetary limit. This will include the sum total of all the expenses expected, a few extras and a 20% margin in case expenses overshoot. Budgets are a great way to set boundaries.
  • Reuse existing things in good condition- While it is tempting to start from the scratch and get an all new look, it makes perfect sense to use whatever is good in the existing property. Not only does it help to cut costs, it also avoids wastage, especially of things recently installed in the property.
  • Strike a balance between quality, beauty and cost-It is always tempting to buy the most exquisite and most expensive fittings and accessories. But functionality and convenience are important as well. Hence, a balance between all these essential parameters becomes important.
  • Avoid frills and ornate accessories- While renovating and overspending an avoidable exercise, it is best to cut down on very ornate accessories, since these can always be added later. Another advantage of this being that once the whole place is renovated, one can get a better idea of what would look good.
  • Eco-friendly materials- using eco-friendly materials is a big saving, and since these are also environmentally friendly, they are better to use while renovating a home. Recycled materials also help in cutting expenses.
  • Reduce size and target efficiency- Efficiency must always be given preference over size, and larger sizes mean more expenses. Hence, in places like kitchens and bathrooms, instead of extending the area, it may be better to find innovative ways of adding storage in the existing area.
  • Maximize use of natural light- While painting, positioning windows etc, maximizing the use of natural light is much better since it will mean a lifetime of reduced utility bills.

The list of ways to cut renovation costs can go on endlessly, but adopting some of the above mentioned measures will help in minimizing property renovation costs.

For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

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