If you are planning to renovate your home, you know that there are a lot of details to work out before you can begin. From the details of what can and cannot be done in a condo to the financial obligations surrounding your renovation, it can be a bit overwhelming. To help make this whole ordeal much easier and alleviate any resulting headaches, check out the following tips for renovating on a budget.

Explore Your Options

Prior to beginning the renovation process, you may want to explore your options for funding the project. Smaller projects may require little cost, which can easily be covered out-of-pocket. The best approach is to avoid borrowing any more money than is absolutely necessary. Credit cards are another option for funding the renovation. Although these charges do reflect on your credit score, funding your project this way can go a long way in building your credit, as long as you are able to keep up on payments.

Personal loans are beneficial as well. These loans will require you to pay regular payments of principal and interest for a specified period of time, which typically ranges from one to five years. A fixed interest rate can also be set for the term of the loan. Personal loans have lower interest rates than your average credit card. However, they are not ideal for long-term projects, as you will need to reapply for an additional loan once you have paid it off.

Another option to consider is a personal line of credit. This may be the best choice if you are attempting to finance a large or ongoing renovation project. Funds can be accessed at any time, and a monthly statement is issued to help track expenses. Similar to the personal loan, interest rates for lines of credit are lower than that of credit cards. Unlike personal loans, however, you do not need to keep reapplying as you pay off your balance. You can continue to use the funds as needed until you have reached the limit.

Secured lines of credit and home equity loans offer the same advantages as personal lines of credit and loans, and they are secured by your home’s equity. They tend to offer preferred interest rates as well. However, initial costs such as legal and appraisal fees apply. This option is usually limited to roughly 80 per cent of your home’s appraisal minus any outstanding mortgage balances.

Depending on your financial situation and credit score, you may have additional options as well. It is best to discuss your options with a professional who can also help weigh the pros and cons of each choice. If you are considering taking out a loan, be sure to shop around and find the lender that is right for you.

Seek Professional Advice

Speak to a financial advisor and your lender to outline your main ideas and come up with a feasible plan to make as much of it happen as possible without breaking the bank. Draw up firm plans and inquire about your options. Your financial advisor and lender can help determine how much you can afford to borrow, what your borrowing limit may be according to your credit score, pre-approve you for a loan, and aid you in drawing up plans that combine your overall goal with renovation projects that work with your budget.

Expect the Unexpected

Unforeseen circumstances are likely to arise, regardless of how strategically you plan your renovation. It is important to plan for any issues and set-backs, no matter how ridiculous or unlikely they may seem. These issues include, but are not limited to, the following :

• Less funding than you anticipated – It is great to have extensive plans that include all the changes your heart desires. However, you should also have backup plans in case funding falls through and you are not able to make all the changes you want. Even ranking your ideas in order of importance and feasibility can be helpful. That way, if you are unable to cover the entire project right away, you can set other tasks aside for another time.

• Unexpected Repairs – If you are living in an older building, you may find yourself requiring expensive repair work prior to installing any new appliances and fixtures. Things run down over time, and these issues can be difficult to see in normal, everyday situations. However, once you start to remove appliances and cabinetry, knock out walls, and swap out plumbing, you may find hidden problems that could prove detrimental to your project and your home. Long-term issues and repairs are typically covered by the landlord. However, the burden of proof lies in your hands, as it may be necessary to prove that the damage occurred over time rather than as a result of your renovations. For this reason, it is advised that you seek an appraisal and make sure that the entire structure of your condo is checked thoroughly. Check the walls, plumbing, etc. to make sure that there are no leaks, damaged pipes, faulty electrical wiring, etc. prior to beginning.

• Inability to Make Specific Changes – Be sure to check with your property manager and condo board prior to beginning to ensure that your project abides by condo regulations and meets any requirements. Also, make sure that all projects are feasible. You may not be able to create that open concept kitchen you desire if the wall you intend to knock out has electrical wiring or plumbing running through it. Other changes, such as relocating plumbing and electrical wiring, may be difficult, if not impossible. Consult with experts to ensure the project can be done and be prepared to cover any additional costs associated with these changes.

Look into Grants and Rebates for Energy-Saving Renovations

Canada is making great strides in the effort toward energy-efficiency and sustainability. If your renovations include energy-efficient upgrades and environmentally-friendly changes, then look into the prospect of receiving grants and rebates that are offered across the country. These are typically offered by the federal and provincial governments, as well as local utilities. If you qualify, they may aid you in covering the costs of these changes.

Part one of this series discussed options available for obtaining funding, as well as the need to prepare for any issues that may arise during the renovation process. The following tips focus more on scheduling and additional ways to save time and money while making the most of your renovation.

Scheduling Is Key

When planning your renovation, it is important to schedule the work to be completed at appropriate times. Any loud or extensive work should be completed during the day, so as to avoid disturbing sleeping neighbours. Be sure to notify them ahead of time as well so that they can prepare for the upcoming renovation and notify you of any issues that may arise from the project. For instance, if you are moving furniture on a specific day, it may conflict with an elderly neighbour’s ability to leave for an appointment if the elevator is blocked off.

That brings me to the second point. If you are living in a high-rise condo, access may be a major issue. You will need access from your vehicle (or the delivery truck) to the building and onward to the elevators, as well as from the elevators to your unit. You will need to schedule deliveries for a time that is convenient for you as well as your neighbours. Scheduling deliveries and removals for later hours (but not too late) will allow you to avoid crowded hallways and ensure access to the elevators without disturbing neighbours.

Get Down and Dirty with the Reno

A huge money- and time-saver is the option of doing most, if not all, of the work yourself. If you are handy, then you will find it much easier to complete the project yourself. However, almost anyone can complete the majority of the work themselves. Things that may not be feasible are plumbing and electrical renovations. If you are not skilled in these areas, then you will save yourself a huge hassle (and a lot of money that would likely be spent fixing mistakes) by contracting out the work. However, the rest of the work can typically be done yourself.

Pitch in with the demolition and help dispose of the debris. Help with recycling and general cleanup to prepare for incoming appliances, cabinets, etc. This alone can save approximately five per cent of your overall renovation costs. It will also save a great deal of time, as you will not need to wait for a cleanup crew to come in and get rid of it.

Your current appliances can be removed and either recycled or sold for funds to go toward the appliances you really want. Additionally, you can check with your local provider for any appliance rebate programs in your area. If they are not available and you are unable to sell them, then list them for free so as to eliminate removal costs.

If you are removing walls or you have a particularly bright space, then you can reduce costs by installing under-cabinet lighting where needed versus more expensive overhead fixtures. If you are creating an open-concept floorplan, then you will likely need to replace the flooring with a single floor covering. While custom floors are certainly appealing, buying in-stock flooring will save both time and money. Only opt for the custom floors if they are a major preference and are budget-friendly.

Additionally, any contractors and assistants should be hired with the knowledge of your property manage and condo board, as there may be strata rules, city bylaws, and limitations with structures such as common walls, supporting walls, and windows. While contractors are beneficial in delegating any work you cannot complete, doing the bulk of the work yourself is very rewarding in more ways than one. While it goes a long way to save time and money, an added bonus of doing the work as a couple (or family) is that it creates a strong bond as you work together to create the ideal home.

Renovating with Disabilities

While it can be extremely rewarding and cost-effective to do the majority of repairs and renovations yourself, it is not always feasible. If you are disabled, for instance, then you may be unable to complete most tasks, which means that you will have to contract out the work. However, this does not mean that you will be stuck paying much higher rates.

On the contrary, you may qualify for additional assistanceto help fund improvements necessary to make living with a disability easier so that you can continue to live independently. Some of these include, but are not limited to, the following :

• Fully accessible bathroom
◦ Shower with built-in seat
◦ Open-concept layout for wheelchair accessibility

• Smart home technology
◦ Remote access to turn off all lights, appliances, and electronics
◦ Thermostat controls installed within reach
◦ Installation of necessary custom lighting

• Accessible doorways and appliances

• Accessible kitchens
◦ Shallow-basined sinks with hose faucets
◦ Insulated pipes below the sink
◦ Installation of drawers for cleaning supplies near the sink

• Disability-friendly flooring

• Pet-friendly renovations for your therapy dog or other support animal

• Rerouted plumbing if needed
◦ Raise sinks for better access (so the wheelchair can fit underneath)
◦ Higher toilet seats for maneuverability between toilet and wheelchair

Disability-oriented renovations are not only necessary for seniors and wheelchair-bound people either. For instance, individuals with Alzheimer’s disease and a variety of chronic illnesses such as autoimmune diseases may all require specific improvements and upgrades that make daily life less of a struggle. If you struggle with a disability, discuss your options with your financial advisor and see if you qualify for additional assistance to help pay for medically necessary renovations.

Renovating on A Budget : Part I by Condo.ca

Renovating on A Budget : Part II by Condo.ca