61% of US homeowners started home improvement projects in 2020. And, in the next two years, homeowners anticipate spending $6,251 on home repairs and improvements on average, while 20% expect to spend $10,000 or more. Renovating can let you turn even the simplest home into your dream luxury pad. However, careful planning, budgeting, and financing are essential for creating a beautiful luxury home without breaking the bank.
Plan your renovations
Carefully planning your renovation is a key first step that’ll help you create your dream home with minimal obstacles along the way. A solid plan will help keep your project on schedule, as well as let you track budget and deliveries. Start by planning the overarching home design and style, which may include major structural changes, knocking down walls, and replacing windows and doors. You can then draw up specific plans for each room, including paint colors, lighting, flooring, furnishings, and fittings. This will ensure your home flows well and avoids mismatched rooms.
Set a realistic budget
Before getting your renovation plans off the ground, you need to set a realistic budget. Your budget will essentially determine which plans are affordable and can be readily implemented and which plans need to be put on hold until a later date. So, start by taking each room individually and research the building costs along with the cost of materials. It’s also beneficial to budget for emergency or unexpected expenses, for example, like fixing broken plumbing or replacing old electrical wiring.
Ideally, saving up cash to pay for your renovation is the best path to take, but not always possible for everyone — especially for larger, more expensive projects. If you want to build a backyard pool, for example, you can refinance house for pool with a cash-out refinance. This involves tapping into the equity you’ve built in your home over time with cash payments. In return, you take out a bigger mortgage, but you don’t need to make extra monthly payments. You simply pay off your old mortgage and replace it with the new one while accessing the difference in value. You can use this low-interest money to pay for your pool or any other home improvement.
Renovating is the perfect way to create your dream luxury home. Careful planning, setting a realistic budget, and financing, can ensure your renovation is both affordable and successful.