Maybe you are a homeowner who has just bought a house recently and one question you have at this stage is, is it worth renovating my home in this economic climate?
Or you are a homeowner who wants to renovate your home to meet your need and your family’s need. How do I know if this is a wise decision and a good time to do the renovation? Is it worth renovating my home in this economic climate?
First, if you are a homeowner who has just bought a house, Congratulations on your new venture! You have done well in finding a new home. This is the perfect time for you to start fresh and make the house a home of your own by doing the renovation.
Some homeowners choose not to do anything to the house they just acquire because it’s ready for them to move in as it is. However, some houses’ conditions are not how you would like to live, but the location is ideal for you. This is also the best opportunity and time to do the renovation.
The same question and dilemma come up again; is it worth renovating my home in this economic climate?
Let’s have a look at ways to navigate this question and dilemma.
- Set your financial position and the budget
It is important to first set your financial position and the budget you would set for the renovation project. Setting the budget means setting aside how much you would like to spend overall.
It is the same as knowing how much money you have in your purse/wallet and how much you want to spend before you go out shopping. It also means it has nothing to do with how much are the cost of the items you are going to buy. If the item you are going to buy is cheap, then you’ll get more out of the money you have. If the items you are going to buy are expensive, then you can only buy fewer items.
That’s how a budget works. We just have to make the best out of what we can get with the budget we have.
The construction cost will not come down, it will only increase or stabilise. If this is the best time for you to do the renovation, then you need to work on your budget and expectations of what you can get, and stick to your budget.
- Assess the investment opportunity
A good renovation will add value to your house, therefore, it is an investment and not an expense. One way you know whether it is an excellent investment is, you can get a valuation of your house before renovation and get another valuation when you have a proposed design for the renovation. This way, you can make an informed decision about how much value you’ll add to your house and how much is a good budget to set for the project.
Also, consider the time you’ll stay in the newly renovated house. Property value always goes up over time, so the longer you stay after you renovated the house, the cost of the renovation will pay for itself as the house value increases. Plus, you get to enjoy the newly renovated home for yourself before you pass it on to a new potential buyer in the future.
- Consider the current buyer’s trend
In the last 18 months, when many builders and construction companies are going down, many homeowners are disappointed and affected by what is happening.
This affects the way home buyers look for a house. Many homeowners don’t have the trust to build their own homes and prefer to buy and move into a reasonably new or newly renovated homes. This trend will continue for some time until the market trust comes back.
As homeowners who are ready and willing to do a renovation for your home, it means that your home will be a desirable home for potential buyers to buy. Plus, as we mentioned in point 2, a good renovation will increase the value of your home over time.
Once you have done the 3 steps above, you will be ready to make an informed decision on your home renovation project.
If you need help navigating your home renovation or home-building project, we at Studio M514, would love to help you!
Book our Free 45 mins Clarity Call to discuss your unique home needs. We can help you map out your options and steps to take to avoid heartache and headache.
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