Renovation series: finance

Learn how to bring your refurb scheme in on budget

Updating an unloved property can be a more cost-effective route to a new home than buying a house that’s ready to move into, plus it means you’ll end up with a space that’s tailored to your household’s exact requirements. However, in order for a project like this to make sense financially, you’ll want to be

prepared in terms of knowing what work is needed and be vigilant in keeping on top of costs as the work progresses.

The only way to budget for your project efficiently from the start is to thoroughly assess the property before you buy. This means getting experts in to survey the building to establish the extent of the works. You could discuss the likely price with a builder, but some jobs are easier to estimate than others. Also, as discussed last month, you should always be wary of quick-fire quotes, because estimates could be generous purely to encourage you to go back to them when you put the project out to tender.

Armed with some kind of understanding of how much the project is likely to cost, you can add this to the house’s asking price to establish if the project is financially viable. Recognise the ceiling price of the street it’s on – this is important because it’s difficult to beat the value of the most expensive property. So don’t spend more than this as you won’t recoup the money if you sell it once finished.

If you use a main contractor for the whole project, you’ll be in a good position to secure an in-depth quote with some cost certainty, too. But managing the project yourself means you’ll be saving the profit margin that the contractor is looking to make, plus you can negotiate directly with trades and suppliers yourself. However, bear in mind a building professional will have good contacts established and pre-negotiated discounts with suppliers already in place. Doing things yourself takes time, too, and if you make mistakes you’ll be the one paying to put them right.

Over the following pages I’ve pulled together some successful renovation projects completed by Build It readers. You can see how much they’ve spent and where that budget went – to read more about each project head over to the Build It website, www.self-build.co.uk.