Whether you’ve bought a rundown apartment for a renovation project that you hope will make you a profit, or are fed up with the style and look of your existing apartment but can’t afford (or don’t want) to move, the budget you have will likely determine the extent of the renovation work you can plan for.
Here are some factors to take into account when considering, or planning for, an apartment renovation.
What percentage of the apartments value should you plan to spend?
Experts advise that you should spend between 6% and 9% of the property’s value when renovating, in order to ensure a good return on investment. Naturally, this figure varies significantly from one project to another, depending on the size of the apartment and where it’s located, but this should be used as a general guideline.
The bigger the apartment, the higher the cost
It goes without saying that the bigger your apartment is, the more money you’re likely to have to spend on it, but it does depend where you choose to spend the bulk of your budget. For instance, if you choose to paint the walls or replace the flooring, this type of renovation work won’t be as costly as renovating the kitchen or bathroom.
Speculate to accumulate
Sometimes, to get the best return on your investment, you have to spend more money, and if the layout of the apartment doesn’t function well, it might be worth investing in some remodeling work, such as removing walls to make the kitchen and living space into one, large room.
But spending more money on something to get a good return still means that you need to think it through carefully and decide which work will get you the best return on your investment. For example, when it comes to apartment renovations, bathrooms are generally more expensive than kitchens, and a few small changes such as new countertops and kitchen cupboards, can breathe new life into an outdated kitchen and make it a more appealing space, while bathrooms typically require new suites, fixtures and fittings etc.
Finding the middle ground
Managing your budget and spending enough, without spending too much, is key to a successful apartment renovation, and discussing the project in detail with a local construction company who specialize in renovations and remodeling, can help give you a more realistic and sensible perspective.
You want your apartment to be a fantastic space to live in – or you want to be able to sell it for a good price – but not at the expense of leaving yourself broke. Try looking at other apartments for sale in your area and see what your competition is before deciding on the extent of renovation work you want carried out.
Budgeting for an apartment renovation isn’t always straightforward, but by carefully considering the above factors and talking at length with a local construction company, you can get the best value for your buck.