Nailing a Realistic Home Renovations Budget in Vancouver, BC
So you’re having a baby! Congrats! But I’m sure one of the things going through your head is how can we renovate our house so that it is baby friendly? All the toys, play kitchens, clothing and accessories this baby needs, it hard to figure out what, if anything, needs to be done. And just how much to spend on it. In this article, we will give you tips on how to decided how much a realistic budget for Vancouver BC, Renovations.
We are focusing on Vancouver, because it is one of the most expensive places to live in all of Canada. We have many moms and dads in BC that ask us all sorts of baby questions. So we thought we would give them some information about renos to their homes to accommodate their new bundle of joy!
So, let’s get into it.
To some folks budgeting for their Vancouver renovations has boring and stressful connotations about it and this is one reason they end up not doing it well or avoiding it altogether. But without carefully planning and coming up with a budget, home remodeling can end up making an unnecessarily big dent on your finances. Or the money could run out and the work stalls in the middle.
Before getting down to setting a realistic home in Vancouver renovations budget, it is important to ask yourself several questions:
1. What are my reasons for remodeling? Some remodeling may be necessitated by the need to have a home office, the need to accommodate an additional member of the family in case of a new baby or the need to increase the resale value of a property if there are plans of putting it on the market.
2. What amount have I set aside or is available for spending on my Vancouver renovations?
3. What are my remodeling priorities for the baby? Some remodeling needs are a must-have while others are just nice-to-have-but-not-necessary. Really think about what baby needs!
4. How long do I plan on living in this house that I am remodeling? If the plan is to live in the house until the babies have grown up or retirement, then the remodeling works can be ambitious. On the other hand if you are planning in the next few years then the scale of remodeling should be moderate.
5. Will the remodeling work be done by a professional contractor or by myself?
So what does a home renovation budget look like?
Whether it’s on paper or on spreadsheets a budget should at least take into consideration the following:
– Labor costs and professional fees.
– Cost of the materials that will be used in the remodeling.
– Permit fees.
– Contingencies for any expense that might be incurred while the job is underway but might have been overlooked or which cropped up along the way.
– Cleanup costs that will be incurred after all the work is done.
– Equipment and appliances that will be bought in case you are doing the work yourself.
So now that you know what will be in the budget for your Vancouver renovations, how do you determine what to spend on what?
While there are no rules set in concrete about how much to spend on renovations a good guide when renovating specific facilities is to assign a certain percentage value on specific rooms and then going by the value of the house to determine what an appropriate figure to spend would be.
The value of a kitchen is usually 10 to 15 per cent of the total house worth. A bathroom is roughly 5 to 10 per cent of the total value of the house while a half-bath would be roughly 5 per cent. An attic or a basement would be assigned a value of 10 to 15 per cent. So think about the long term with a baby. What the little one needs now, she won`t need when she`s older.
EXAMPLE: Going by the above for a house valued at $600,000 the remodeling of the basement should cost be between 10-15% of that which is $60,000 to $90,000.
When it comes to contingencies, it is usually 15 to 20 per cent of the total cost.
EXAMPLE: Using the previous example of renovating a basement where you are planning to spend $60,000 then the money set aside for cost overruns should be between $9,000 to $12,000.
When all is said and done setting a realistic home renovations budget will not help if you are not going to stick to it. It is therefore important to remain disciplined. This will help you stay the course. And solvent.