Don't forget to factor these commonly overlooked items into your building or renovation budget

When you’re budgeting for your new home or renovation, it’s easy to focus on the cost of construction and forget about all the other costs that you might incur during the project. This article is not intended to scare you off. On the contrary, the long-term rewards of your new home or renovation will far exceed any short-term expenses, but it pays (pardon the pun) to be prepared so that you don’t run out of cash halfway through the project! 

Permits and licenses

Depending on the scope of your renovation, you may need to obtain permits and licenses from local authorities. These can come with fees that should be accounted for. Planning and building permission can run into hundreds and thousands of dollars, so be prepared for these costs and speak to a building industry professional to help you understand what kinds of permits and licenses you’ll require as well as their associated fees.

Design and architectural fees

If you're working with a professional designer or architect to plan your new home or renovation, their services will come at a cost. Design fees can vary depending on the complexity and size of the project, so do your research and find an architect or designer with whom you feel comfortable and ask them for a fee proposal for your project.

Structural modifications

If your renovation involves making structural changes to the building, such as removing walls or adding support beams, you may need to hire a structural engineer. Their expertise and fees should be considered. An architect can often suggest structural engineers they typically work with and can advise you of their likely fees. Your architect can also help you brief the structural engineer and request a fee proposal on your behalf.

Unexpected repairs

With renovations, you sometimes encounter unexpected conditions. Once you start the renovation, unexpected issues or hidden damages may be uncovered, especially in older properties. For this reason, setting aside a contingency fund for unforeseen repairs is advisable.

Temporary housing or storage

If you plan to stay elsewhere during major renovations, you'll need to factor in the cost of temporary accommodations. Additionally, if you need to move your belongings into storage temporarily, storage fees should be considered. On the issue of moving out or staying put during the (controlled) chaos of renovating: it’s a risk to the builder to have you living on the site while work is being undertaken, and it certainly gets tricky with insurances. So if you’re planning to save on temporary housing and live in the midst of your renovation, you may end up paying more. So you need to ask yourself, as well as having a frank conversation with your architect or builder: is it really worth it? Either way, you’ll need to allow some additional funds to ensure you can cover living expenses while undertaking your renovation.

Utility disruptions

When renovating, there may be temporary disruptions to utilities like water, electricity, or gas. If you need alternative arrangements during this time, such as renting a generator, those costs should be included in your budget.

Cleaning and waste removal

After the builders have packed up and your new home is complete, there will likely be a need for cleaning services to remove dust, debris, and construction waste. Builders will factor this into their price, but if you’re owner-building or managing a smaller renovation yourself, budgeting for professional cleaning or waste removal can help ensure a smooth transition and save you some elbow grease.

Landscaping and exterior updates

Don't forget to account for landscaping costs, such as instant turf, planting, or hardscaping improvements. Many people forget to factor landscaping into their budget altogether or quickly gobble up their landscaping budget as some of these other unexpected costs creep in. While landscaping can be something you tackle at a later date, it’s disappointing to move into your new home overlooking a dust bowl! So, provided you’ve allowed for all the other costs we’ve mentioned, leave some budget for your landscaping and get it all done at once.

Finishing touches and furnishings

Sometimes people focus on their new home or renovation so much, they forget to allocate funds for finishing touches, such as paint, window treatments, fixtures, furniture, and decor. These items can add up quickly, so don’t ignore them. Besides, building your new home or renovation is the perfect opportunity to rethink your furniture and even choose pieces that are perfectly sized for your new spaces. This is something an architect can help you with, helping you choose furniture items that will stand the test of time and look and feel incredible in your home for many years to come. So be sure to leave some room in your budget for the right furniture and fixtures to complete your home.

Increased utility bills

After completing your renovation, it's possible that your utility bills may increase. Good architects will always design energy-efficient extensions, but if you’re adding additional square meterage, it’s going to cost more to heat and cool! Factoring in potential adjustments to your monthly expenses is important. Your renovation is also a great time to plan for infrastructural changes, like disconnecting from gas, installing solar panels, a home battery, or new, more energy-efficient heating and cooling. The payoff for such home improvements is quite quick, particularly if you can tackle it as part of your renovation when you’re already likely messing with pipes, circuits, and ducting anyway!

What have you forgotten to include in your budget?

Have you forgotten to allow for any of the above? While it might hurt to put figures beside all these line items and you might get a shock when you hit AutoSum, you’re far better to be prepared for these potential costs than to be caught out by them mid-way through your build. As part of our Design Diagnosis process, we put together a comprehensive budget for you so you know what to expect and you can keep you budget on track.

Need help budgeting and project planning?

If you need assistance with budgeting and project planning, our design diagnosis could help. With this service, we take the time to understand your needs and prepare a project brief, we investigate your property and analyse and document the existing conditions, then we develop a series of options that meet your needs. Alongside these designs, we offer budget ranges so you understand the cost implications of each option. Design diagnosis will help to get your project off to the right start so you can feel confident moving forward knowing you've got all your bases covered and you're making the best possible investment in your home. To discuss your project, book a time to chat!