Budgeting for Renovations
The real estate market has changed dramatically over the past year, and as inflation and interest rates rise, fewer buyers are making home purchases. If you were planning to buy an upgraded home, now may be the perfect time to invest in the one you already live in!
One of the best ways to start budgeting is to review your current income, expenses, and spending habits. Identify any big spending habits you can cut back on and start putting that money aside in an account for renovations. As a rule of thumb, plan to spend between $10 and $50 per square foot of renovated space. It’s also good practice to save more than your estimated renovation costs to prepare for the unexpected. Nothing is worse than starting a project and not being able to complete it if it goes slightly over budget due to unforeseen challenges!