Many people approach us to fix their salt damp at the beginning of a larger renovation. We often hear how stressful the process of renovating is and how much confusion exists on financing it. To help alleviate some of the stress we have asked the experts at MacNab Finance for their tips and tricks for financing and budgeting for a renovation. They have also shared their handy checklist of questions to ask a potential builder before commencing your renovation.
Ask the Expert: Tips on how to finance your renovation and choose the perfect builder.
Finance Tips for Renovations
Building or renovating is a great way to achieve the house you desire. You have the freedom to add quality craftsmanship and the design features that you and your family will value. Creative projects like these are both exciting and stressful. Not only do you need the right loan features to save financially and have greater control of your project, you need the right advice on how the loan is to be considered by your lender. For example: building/construction loans aren’t generally available for renovations unless they are significantly structural and with a fixed price build contract (for example adding another level or extension to your existing home). For a kitchen or bathroom renovation you would typically use your existing equity.
When it comes to choosing finance to build or renovate your new home, there are a number of associated costs to consider. You will need to factor in stamp duty (on the mortgages), legal costs, insurance, surveys and searches, inspections, council rates. Other costs you may incur are rent and moving costs (if you have to rent while your new home is being built) and landscaping expenses after the building is complete if they were not included in your contract. With so much to think about, it’s important to have the correct loan to suit your project. Be sure to engage the professional services of a finance specialist like ourselves before entering into any contract with a builder
Choosing a Builder?
Choosing a builder who is right for your project can be the difference between a massive headache and an enjoyable, hassle-free project.
It’s important to know what to ask your builder. The following checklist will provide a good starting point. Don’t be scared to ask these questions. Remember – it is always better to ask upfront than to find out critical information when it’s too late.
- Visit the websites of the Housing Industry Association or the Master Builders Association for builders in your area, then make a list of potential builders.
- Check each builder’s website for images and photos of recent work and look for testimonies of other people who have recently used their services.
- Ask these questions of each builder so you can compare quality and experience, allowing you to see how easy it is going to be working with them.
- Are you able to provide me with your builder’s registration and licence if we proceed with you? You can also check this online – click here for link
- What evidence can you provide that will show you are financially sound and can complete my project?
- Are you currently insured?
- What are your professional memberships and registrations? (HIA/MBA/other?)
- How many years have you been in the industry?
- What experience do you have with renovations/new builds?
- Can we speak with some of your most recent clients?
- Do you provide a written itemised quotation clearly outlining what is included or excluded in the price?
- Are there any hidden or extra costs that may be charged?
- What are your standard features and what will cost me more?
For more information or to discuss finance options further then give Linda and Mark MacNab a call on 83576806
21 Benjamin Street St Marys SA
08 8357 6806