How To Manage Your Reno Budget Keep financially fit while realising your forever-home dream.

Staying on top of costs is key to a successful – and profitable – home renovation. Here’s how to do it from start to finish, writes Georgia Madden.

Renovating is a great way to add value, but it’s important to track the numbers as you go along. “Winging it is the worst thing you can do – before you know it, you’re at the end of the project and you’ve spent twice as much as you’d intended,” says Cherie Barber, founder and

CEO of Renovating For Profit.

“Renovating TV shows make it look easy, so people set out thinking it’s going to be a walk in the park,” she says. “They often don’t know how long things take, how much tradies cost or what can slow a reno down. The key is to take the time to do your research before you start, put together a solid budget – and stick to it!”

Doing due diligence also helps you figure out if you can actually afford what you want to achieve, says Naomi Findlay, renovating expert, designer and educator (www.naomifindlay.com). “The last thing you want is to run out of money and end up with a half-finished room or home. If that’s the case, you will have technically devalued your property as not many people will want to buy a house that’s not deemed liveable.”

“A property surveyor or experienced designer will be able to give you a realistic sense of the costs involved in your planned project,” says Cherie.

“If you decide to cost it yourself, make sure you research it thoroughly.”

The budget should be broken down into three parts: materials, trade costs, and incidentals. “People typically neglect to include costs such as tip and skip fees, holding costs, temporary fencing and extra electricity, but they can really add up,” says Naomi.

Get three quotes for every job to give yourself a benchmark for the budget, then try and negotiate fixed-price quotes from trades (be sure to check licenses!), says Cherie. Also make sure you’re using the right tradie for the job – don’t hire a carpenter for $75 an hour to put up a shelf when a handyman can do it for $50 an hour.

When comparing quotes, remember that cheapest isn’t always best. “Compare all aspects within the quote, not just the dollar value. Factor in the materials, the quality of the work, insurances, and the timeline,” says Naomi.

A contingencies fund is crucial too. “A buffer of 10-20 per cent of the overall budget is ideal, but if you’ve done your due diligence, you can probably get away with 10 per cent,” says Cherie.

Once work is underway, stay financially fit by keeping a firm eye on the budget. “Use a spreadsheet that lists everything that needs to be done per room and update it as you go,” says Cherie. “Keeping track of the costs this way means you can make little nips and tucks to accommodate larger unexpected bills.”

Tempting as it may be when the budget is tight, don’t try to do every job yourself. “DIY-ing everything is a false economy,” says Cherie. “Use your brain to keep the budget and timeline on track, not your brawn to do jobs that are better outsourced to licensed tradespeople. It also makes your renovation far more enjoyable.”