Real estate has long been considered a safe and profitable way to invest your money. But rising high prices are making this a more difficult option compared to years gone by. As a result, more and more people are looking for more affordable ways to get on the property ladder. Popular options include shared ownership, offset mortgages, and taking advantage of government schemes.
But if you’re prepared to take on a challenge, purchasing a home in need of renovation can be a great way to own a home whilst also cutting the cost of doing so. However, if you are looking to renovate a home to save money, you will face the difficult task of renovating on a budget.
If you’re about to take on the challenge of renovating a new home on a budget, here are 5 tips to follow.
5 Tips For Renovating A House On A Budget
- Set a budget
Budgeting is arguably the most important thing to consider if you are renovating a new home on a tight budget. Failure to realise how much money you are spending could lead to your renovation journey being costlier than purchasing a more expensive new build that can be lived on from the moment you get the keys.
Sit down and consider how much money you have, and how much of your savings can be committed to your renovation. You will want to ensure that you’re leaving yourself enough money to cover future expenses such as bills, groceries and emergencies. If buying a home with others, you’ll need to be honest and transparent about financial circumstances to give yourselves an accurate idea of how much money you are working with.
While a home in need of renovation is often on the market for cheaper, upfront costs can be higher due to the money you’ll need to spend on upgrading the property. This is a key consideration and is very different from a mortgage where payments are spread out over a long period of time.
- High Impact, low cost
Once you know what kind of budget you are working with, it’s time to work out where to spend that money. The best way to ensure you spend your money wisely is to focus on low-cost purchases that have a high impact.
If you’re unsure what qualifies as a high-impact purchase, think of the first things you notice when walking into a home. For instance, fresh walls and new flooring are a great way to breathe life into an old home. However, these aren’t expensive investments and are a great example of low-cost, high-impact upgrades.
Fresh flooring can also give the illusion of a bigger home. Consistent flooring throughout the home creates a flow that will make the house feel like one large space as opposed to a group of small rooms.
- DIY
How much of the renovation can be carried out by yourself, or by people you know, will have a huge impact on the overall cost of the renovation. There will be some jobs that require a trained tradesperson. For example, if your home is in need of some electrical work, you’ll probably need to call on the help of a trained electrician.
It’s worth exploring your network to see if you have any connections that could do this at a cheaper price. For simpler things such as painting and taking up old carpets, carrying out these tasks by yourself will save you a lot of money.
Also, consider what skills can be learnt to help make your renovation project more cost-effective. Jobs like putting a TV on a wall or upcycling furniture aren’t too difficult and can be achieved with the help of a few online tutorials. On the other hand, using companies or purchasing replacements will be a far costlier option that may take you over budget.
- Shop smart
The final thing you’ll need to do is furnish your new home. This is the part that many people find the most enjoyable as it provides a way to put your own stamp on a new home. However, it’s important to shop smart and not get carried away. Refer back to your budget and work out how much you have left over.
While these little touches can make or break a home, you can still find some great deals online that will allow you to fill your home with luxury goods at an affordable price. Consider shopping around times like Black Friday and Boxing Day too to find items at a discounted price.
You’ll also find that your friends and family will be all too happy to shower you with presents in celebration of your new home. It might be a good idea to request homeware gifts to help you decorate your new home while also saving money.