How to save on your renovation costs

When you’re renovating your home, it can be surprising how quickly all the small costs add up. A modest budget can easily balloon into unaffordable territory if you’re not careful – even for a small-scale home upgrade.

That’s why finding new and inventive ways to save on your renovation costs is crucial for any homeowner in Australia hoping to stay on budget – particularly in a time of higher materials costs due to supply chain delays.

Let’s explore some of the ways you may be able to save on your renovation costs.

Top tips to save on your renovation costs

• Get lots of quotes

There’s a reason experts say to always get a second quote or opinion. By opting to go with the first quote you receive, you run the risk of missing out on a better deal from a competitor. Before you begin your renovation, you’ll want to start with as many price points as possible to ensure you’re choosing the best teams, materials, and labour for your goals. This could see you save hundreds, if not thousands of dollars.

• Reuse what you can

Depending on your renovation project, another way you can potentially shave down costs is by reusing what you can. For example, if you’re renovating a kitchen and bathroom, you may find that some of the existing materials, like the faucets or the flooring, could still be in great shape and easily be reused. Keep in mind that trends are cyclical and it’s not uncommon for your older features to come back in style after a few years (and become quite expensive) so consider where you can save costs by reusing materials.

• Shop secondhand

There’s a reason that so many people spend their weekends hunting for interior design bargains and going antiquing – shopping secondhand is a great way to save money and find an unlikely gem along the way. Hop online to platforms like Gumtree, eBay or FaceBook Marketplace to look for used or secondhand goods at reduced prices. Consider attending auctions of used or secondhand building materials as well. Also consider venturing to salvage yards, as it is common that excess building materials, like windows, doors, timber, bricks and more, can show up at rock-bottom prices.

• Pay premium when needed

While saving money on your materials and labour where possible is crucial for balancing a healthy renovation budget, there are some areas where it can be more cost effective to pay a premium. If you love a DIY job, keep in mind that some tasks may be better performed by professionals. This is because if any mistakes occur, you may find yourself spending so much more in ongoing repairs, maintenance, and full re-do’s. Anything like electrical, plumbing or structural work should be tasks you consider outsourcing – especially in states like NSW, where DIY electrical work is illegal.

• Don’t discount DIY

That being said, it is still worth looking into aspects of your renovation plan that you can do yourself, as performing the labour of more accessible tasks could easily save you money. Consider attending local workshops, or speaking to friends that are tradies, for practical advice. And remember that almost everything is on YouTube or other how-to guides. You may find that spending the time to learn a new skill creates a hobby for life, not just your home improvement project.

Save money by choosing the best finance option

An often-underrated aspect of saving money on your renovation costs is considering your financing options carefully. There are a range of ways that homeowners can consider paying for their projects, including:

• Savings account – If you have the cash reserves, you may be in a financial position where you can just pay for your renovation goals through your savings alone.
• Redraw facility/offset account – Similar to the above, if you’ve been making additional repayments into a redraw or offset account, you may be able to access most or all of these funds via your home loan feature.
• Home equity loan – If you’ve built up equity in your home, you may be able to draw down on this to help fund your renovation project. Funds are delivered either as a lump sum payment (like a personal loan) or a line of credit (like a credit card).
• Personal loan – A renovation personal loan would see you taking on debt to pay for your project. However, unlike the above, you won’t need to use your existing cash reserves or lower your home equity. By having a shorter repayment term than a home loan (1-5 years generally), you’ll likely pay less interest on a personal loan than other options over the life of a mortgage.
• Interest-free credit card –Another option to consider is applying for an interest-free credit card with a credit limit that could help you finance your home improvement project. Just be sure to calculate ahead of time that you can budget appropriately for the card repayments before the interest-free period ends, or you may find your debt snowballs quickly out of control.

Compare renovation personal loans

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