When planning a home renovation, it’s easy to get swept up in inspiration—those dream items that take your vision to the next level, from luxurious fixtures to custom cabinetry and high-end appliances. These wishlist items, or "renovation inspo," often come with a hefty price tag, and if not carefully planned for, they can derail your budget.
In this guide, we’ll show you how to budget effectively and set aside enough for those special renovation inspo items, ensuring that your dream home becomes a reality without breaking the bank.
The first step to budgeting for renovation inspo is to define exactly what those wishlist items are. These might be the things that elevate your space beyond the basics—such as a marble kitchen island, built-in smart home technology, or bespoke furniture.
Start by making a detailed list of all the dream features you’d love to include. Be realistic about your priorities. Ask yourself which items are essential to achieving your vision and which ones are nice-to-haves. For example, if a sleek, minimalist look is non-negotiable for your kitchen, high-quality cabinetry may be worth the investment, while expensive designer lighting fixtures might be something you can compromise on.
Once you have your wishlist, research the costs of each item. This will give you a clearer understanding of how much you’ll need to set aside for your renovation inspo.
With your wishlist in hand, it’s time to prioritise. Not all renovation inspo items will fit into your budget, so it’s important to determine which ones will have the biggest impact on your space.
Break down your wishlist into three categories:
By organising your inspo items into these categories, you’ll be able to focus your budget on the features that matter most while still leaving room for those extra special touches if your finances allow.
Before diving into the specifics of how much to set aside for your renovation inspo, you’ll need to establish a realistic overall renovation budget. This budget should cover the basics—labour, materials, permits, and essential work like plumbing and electricals.
A good starting point is to set your renovation budget at around 10-20% of your property’s value for a full home renovation. For smaller projects, research the average cost for the type of renovation you’re planning (e.g., bathroom remodel or kitchen renovation).
Once you’ve set a clear budget for the essentials, factor in your renovation inspo. This is where having your prioritised wishlist comes in handy—knowing which items you can afford to splurge on and which might need to be scaled back.
Now that you have your overall renovation budget, you’ll need to allocate a specific percentage of it for your wishlist items. A good rule of thumb is to reserve about 15-25% of your budget for these dream features. This ensures that you can incorporate a few standout elements into your renovation without compromising on essential work.
For example, if your total renovation budget is $100,000, setting aside $15,000-$25,000 for high-end finishes, custom installations, or top-tier appliances gives you the flexibility to add those personal touches that turn a good renovation into a great one.
It’s important to be realistic and flexible when incorporating your renovation inspo into your budget. Sometimes the costs of these wishlist items might exceed your initial estimates, or unforeseen expenses during the renovation could eat into your allocated funds.
To prepare for this, identify where you can make adjustments. Perhaps you opt for a mid-range version of a high-end item, such as choosing engineered quartz countertops instead of natural marble, or you could phase in certain luxury features over time rather than including everything in the initial renovation. Flexibility is key to ensuring you stay within budget while still achieving a beautiful result.
If you have your heart set on an expensive renovation inspo item, don’t give up hope if it initially seems out of reach. Researching sales, discounts, and alternative suppliers can help you snag those dream items for a lower price.
Many suppliers offer seasonal sales, clearance deals, or bulk purchase discounts that can significantly reduce costs. Additionally, consider looking into off-brand alternatives that offer similar quality and aesthetics at a lower price point. You can often achieve the same luxurious look without the high-end price tag.
If your renovation inspo includes costly items that you can’t afford to pay for upfront, you might want to explore financing options. Renovation loans or personal loans can help you spread the cost over time without putting too much pressure on your immediate budget.
We would like to caution that we do not recommend scrimping on your main renovation works in order to afford your wishlist items, and that financing options should be considered carefully to avoid overspending. They can be a useful tool to ensure that you don’t miss out on incorporating key design features that you’ve always wanted, but they should not be used just to afford some wishlist items.
If the item you realllly want comes with an option to pay in multiple interest-free instalments, this could be a better way to pay without forking out too much money upfront.
No matter how well you plan, renovations almost always come with unexpected costs. From hidden structural issues to last-minute design changes, these unforeseen expenses can strain your budget.
To avoid derailing your budget completely, set aside an additional 10-15% of your total budget for contingencies. This extra cushion allows you to handle unexpected challenges without sacrificing your renovation inspo. For example, if you’ve already reserved $20,000 for luxury features, adding a further $5,000 as a contingency fund ensures you can accommodate any surprises without cutting back on your wishlist items.
When deciding how much to spend on renovation inspo, consider whether these items will add long-term value to your property. High-quality finishes, modern appliances, and smart home integrations can increase your home’s market value, making them worthwhile investments.
If resale value is a consideration, focus on renovation inspo that appeals to future buyers. Kitchens and bathrooms are typically the most important rooms when it comes to adding value to your property, so luxury finishes in these spaces can yield a good return on investment.
Throughout the renovation process, it’s essential to keep a close eye on your budget. Regularly reviewing your spending will help you stay on track and prevent overspending on your inspo items. If you find that certain areas of the project are running over budget, look for ways to adjust your wishlist without compromising on the overall vision.
Being disciplined about budget reviews ensures that your renovation stays financially manageable and allows for the smooth incorporation of your renovation inspo without exceeding your financial limits.
Budgeting for your renovation inspo is all about striking the right balance between dream items and practical spending, but managing this balance can be challenging. This is where HomePay comes in. HomePay simplifies the budgeting process by allowing you to track payments, control spending, and manage milestones—all in one place. Moreover, with our secure payment system, you can ensure that your funds are released only when specific parts of your renovation are completed to your satisfaction!
By using HomePay, you not only stay on top of your budget but also gain peace of mind knowing that your renovation inspo is achievable without financial stress. Whether you're splurging on a custom feature or managing costs carefully, HomePay ensures that your renovation runs smoothly from start to finish, so you can focus on bringing your dream home to life.
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