When you’re embarking on a renovation project as a certified owner builder, you’re going to want to ensure the project is a profitable one and doesn’t suck up all of your resources in unexpected costs.
Embarking on a renovation as a newly licenced owner builder can be filled with learning curves but losing money on a project is not something you want to experience and being aware of how to work out how much a reno will cost is essential.
While a blow out of $1000 to $2000 for an owner builder is usually expected, blowouts of more than 10% in a total renovation budget can be downright impossible to recover from and get a return on investment.
If you’re about to embark on a owner builder renovation project here are some tips for working out how much a renovation will cost to ensure you’re in the right ballpark with your finances.
Consider hidden costs
Things pop up, that’s inevitable, but you should be aware of periphery costs that will add to your budget. While you might want to budget optimistically, keep in mind that a budget with more room to move is the way to go and always factor in any trades that need to be brought in as this can bring up your costs substantially super quickly.
Determine your wish list and ensure your budget matches
While we all want the best of the best when it comes to renovations, it’s important to budget properly and include only things that meet the cash you have available for the renovation to be profitable.
Doing your homework and finding cost effective cabinet handles, ringing around for bench top prices, compromising with the latest bathroom taps and spending based on what will be the best ROI is essential and prioritising your spend will allow you to get the best result for your renovation.
Get lots of quotes
Getting quotes might be time consuming but they can make a huge difference for owner builders looking to make the most from a property investment. Often if trades are busy they will provide an inflated quote to be quoted out of the job so doing your homework is important to get the best price for your project.
Ask for recommendations from friends, family and any building colleagues and try and use local trades who are in the area and won’t charge huge fees for their work due to travelling long distances.
Getting three quotes is ideal and as an owner builder you can play off the trades to see if they will negotiate to get the best price.
Keep a close eye on variations
Variations as a certified owner builder will be the bane of your existence and you will need to be aware these things happen however you will need to keep on top of any variances to ensure any final invoice amounts are not a shock.
Keep a spread sheet with the estimated cost, approved amount, variations and final amount so you are well aware of what the final cost will be and can update other costs on your spread sheet to ensure your renovation doesn’t blow out too much.
Prospective NSW owner builders and QLD owner builders now have the option of undertaking an online course to get their qualification quickly and simply online.
If you’re passionate about renovating and looking to become an owner builder we have the qualification to suit your needs. We offer a fair trading approved certification via an online owner builder course that is suitable for NSW and QLD residents. To find out more click here to discover everything you need to know about becoming an owner builder today.