Part 1: Extension Costs Under Control
They say money can’t buy happiness, but it can buy you a lovely home! The real question is: how much money do you need to create that dream home?
“How much will my home renovation project cost?” is one of the most common things I’m asked. Sadly, I don’t have a crystal ball, but I can help you to understand the process, the associated costs and how to budget for your project.
Understanding all of this will give you the best chance of getting it right without running out of funds.
Create A Budget From The Start
This might sound obvious, but it’s a really straightforward way to keep your costs under control during a project. Map out everything that you’ll need to pay for, then check how much you can realistically afford to spend on the renovation. Don’t forget to hold a healthy contingency fund as well – you can always blow it on a fancy sofa, if it’s left at the end (although it rarely is).
Beware, Other Costs Mount up!
There are plenty of costs outside of the building work itself which are often overlooked but really can mount up. These can include consultants’ fees, applications, and surveys, which all come in the months leading up to your building work.
Don’t forget to factor in VAT – this is a killer 20% at present, so it’s important to understand how this will impact your building work. At the time of writing, extension projects are subject to 20% VAT, whilst new builds are VAT free.
Don’t Forget The Finishing Touches
Once the building work is finished, you’ll also need to have funds left over for things like kitchens, flooring and furniture. It’s these finishing touches that feel far away at the start, but which you’ll want to include to finish the job.
Click here to read Part 2: Getting an accurate quote for your building work!
