Creating a dream kitchen may be high on your home improvement wish list, but a full-scale renovation can come with an expensive bill. Setting and managing your budget effectively will ensure your remodelling project stays affordable despite any unwelcome surprises!
How are you going to pay?
Before calculating how much you can put aside for a kitchen renovation, you may need to explore payment options to gauge your financial boundaries. Whether you are taking out a loan, dipping into your savings or using existing equity, this will affect how much you can spend and how quickly you can get started.
Setting your budget
Once you know how much you can afford, you’ll need to decide how much to spend. If you are planning to sell your property, the kitchen renovation cost should never exceed the value it will add to the selling price. However, if you’re planning to live in the property long-term this may be less of a consideration.
Make sure to factor in all of the costs when setting a budget, which will often include:
- Fixtures and fittings
Expect the unexpected
You should always set aside an additional chunk of your budget to account for unforeseen problems or unexpected expenses – 20 per cent is a good start. This can be particularly important in older houses where electrical wiring may need work or leaks may have gone unnoticed. Furthermore, many contractors and kitchen manufacturers will require a deposit before work on your remodelling can begin, so make sure to check and compare rates before committing to an agreement.
You may need to ask when your final payment is expected and how much it will be. This will set a clear timeline that you can plan around to ensure confusion over payments doesn’t delay completion of the project.
Stick to your priorities
Before commencing with a kitchen renovation, you will need to work out what your priorities are. Are you more concerned with new appliances, upgrading your cabinetry or having a kitchen island installed? If costs begin to mount up and you have already worked through the money you put aside for unexpected expenses, you will need to know what elements can be made more cost effective or even dropped altogether.