How to Be Prepared for Hidden Expenses during Home Renovation

Successful home remodelling is about more than choosing a new colour palette and furniture for your house. You need to set a budget for essential repairs and renovation, and keep an eye out for hidden expenses that could make you go over it, especially if you’re using a home improvement loan or personal loan to pay for the remodel!

7 Hidden Costs that Could Affect Your Budget

To avoid running out of money and dipping into your savings during the remodelling process, remain alert for these 7 common problems:

1. Conservative Estimates – It’s difficult to get an accurate estimate from contractors, carpenters, painters, electricians and plumbers before beginning a remodel. In most cases, the actual expenses will be higher than what you were told they would be. To be safe, expect vendors to underestimate the cost and plan for a little extra.
2. Fixtures and Fittings – We often forget to check the complete list of items that will be needed, in the excitement of picking out the perfect paint, appliances and furniture for each room. When you’re planning a remodel, be sure to account for all the fittings, fixtures and accessories used in any part of your house.
3. Internal Water Damage – Leaky pipes and other plumbing problems may not be obvious during day-to-day use, but they can cause internal damage that will only show up over time, or while remodelling. For instance, you may notice water seepage in the walls of your home after moving furniture away, or stripping them of paint.
4. Fungus and Mould – High humidity and heat in external or internal walls creates the perfect breeding ground for fungi, especially if there are water leaks. Look for black, white or grey fuzzy-textured patches under bathroom counters, behind kitchen tiles and even on furniture, usually accompanied by a musty smell.
5. Pests/Termite Damage – You need to perform pest control if you discover an infestation of cockroaches, ants, rats or other pests during renovation. If termites or other wood-destroying pests have been hiding in your home, the cost could be even higher, since you may need to replace damaged furniture and fittings.
6. Construction Waste – During home remodelling, you need to ensure that waste materials from demolition and construction activities are properly disposed of instead of being dumped in the garbage or by the roadside. Not only does this affect the environment, but could also lead to heavy fines and penalties.
7. Adjustments and Changes – You may want to make minor or even major adjustments to electrical wires, lighting, pipes or air conditioning while renovating your house. These expenses may not seem like much on their own, but they can add up if you aren’t careful about planning, managing and budgeting for them.

A home renovation loan can help you make necessary improvements, or give your house a face-lift when it starts looking dull. MoneyTap’s personal line of credit is a convenient option, with more flexibility and control than traditional home remodel loans. Download the app today!