The Learning Centre
Planning and budgeting your home reno
Now that the school year is coming to an end, you can finally tackle those much-needed home renovations! And you wouldn’t be alone – according to a poll done by Harris/Decima*, home renovation is on the minds of 40% of Ontarians this year. Not only is renovating your home a great opportunity to update and improve your living space, it could also significantly add to the resale value of your home.
The key to a successful renovation? Smart budgeting.
The same poll indicated that the homeowners who are planning a home renovation expect to spend an average of $15,300. The key is knowing how to get the most value out of that amount, and we have a few tips that can help you make the most of your home reno:
- Plan and prioritize. As an educator, you know firsthand the importance of planning ahead. If you’re not quite sure where to start, begin a list with the “must haves” and work your way down to the “nice to haves”. If you’re working with a smaller budget, it’s probably best to take care of the “must haves” first. Also keep in mind that bathroom and kitchen renovations have the greatest effect on the value of your home, so you might want to focus on those areas first.
- Do your research. When you’re looking for a reliable contractor, ask your friends, family and fellow educators for recommendations. While it might seem like hiring Joe the Discount Contractor is a good idea, if Joe isn’t a certified and qualified professional, fixing his mistakes could end up costing you more money in the long run. And don’t just settle for the first estimate you get. Get several estimates on cost, as well as on timing, so you can determine your best course of action.
- Get your financing in place. Once you have a good idea as to how much you’ll need for your home reno, you’ll need to ensure you have the funds to pay for it. If you need to supplement your savings, consider a low-rate borrowing option like a line of credit through Educators Financial Group. It’s a lot cheaper than using high-interest credit cards and, as a member of the education community, you could enjoy rates as low as 3%**.
- Start small. As much as you’d like to do one big renovation all at once, you probably don’t want to still be dealing with a huge renovation when you’re about to kick off the new school year. Start with a few smaller projects first that you know can be completed within the two month summer time frame. Smaller projects can also help you keep better track of your budget.
- And finally, be sure to budget for “surprises”. Anyone who watches a lot of home renovation shows on TV knows that it’s pretty much inevitable that there’ll be some kind of “surprise” – faulty plumbing, wiring that isn’t up to code or an infestation of termites. Make sure you include enough buffer in your reno budget to accommodate any unexpected expenses.
Ready to make your home renovations a reality? Get a low rate Line of Credit through Educators Financial Group.
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