Tips for achieving a Debt-Free Home Renovation

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16 Mar Tips for achieving a Debt-Free Home Renovation

A home renovation can be both an exciting and stressful project. Depending on the renovation, it can be a costly procedure if not planned out carefully. Here are a few tips to achieving a debt-free home renovation, so you can enjoy your remodel when the project is complete and not stress over the financial burden of the project.

There Are Many Reasons to Pursue a Home Renovation or Remodel

There are many reasons why you want to spruce up your home and they can be as varied as:

  • It’s just overdue, you want to enjoy your home and it’s become tired looking;
  • You are in the process of selling your home, and you need to improve its look;
  • There has been a significant change in the family situation- parent moving into a basement apartment, or children moving out;
  • There are restrictions in the current lay-out that really need to be modified for practical use and enjoyment of the home.

Planning and Budgeting

Whatever the reason for the renovation, the most important thing is that it be properly planned for. This point is so important it can’t be stressed enough.

Examples of planning points include:

  • Deciding what and how extensive your renovation will be- this is part of the budget process and may change as cost estimates change;
  • What is your allocated budget for the project;
  • Having a savings account built up to help you fund all or almost all of the renovation without the use of any credit;
  • DIY, what can you do yourself is a starting point for cost savings;
  • DIY with help from friends or family, this may require timing the renovation activity to when your helper is available;
  • Always be prepared to reassess and scale back before you start or commit to the project, this requires good communication with your partner – what are our must-have changes, versus wouldn’t it be nice to change.

Be Prepared for Unforeseen Work and Added Costs

The importance of the planning and budgeting for the project help to avoid costly decisions on renovations that weren’t planned for. As we all know, changes in plans tend to cause a steep increase in costs, particularly when it involves more work. This is a very serious issue if you are using an outside contractor, as the original cost quote may have been a reasonable amount because the contractor had a gap between projects and wanted to keep the employees busy.

There are many helpful suggestions on-line for renovating, but the above tips will certainly improve your prospects of a having a happy and financially healthy home renovation, without the bad aftertaste of incurring debt to fund it. For more information about ensuring a debt-free reno or how to manage debt, talk to the debt consolidation professionals at McLennan & Company Ltd.

Happy home renovations!