Whether your kitchen was an interior decorating disaster when you bought your home or you're just tired of the way it looks, remodeling the area is a great way to turn the space into something that fits your style and needs. One of your critical first steps with this type of project is to ensure you create a budget that accounts for all the costs you're likely to incur. However, here are two that are commonly overlooked.
The Cost of Funding the Renovation
There are many ways to pay for a kitchen remodel, such as savings, home equity loan, or credit cards. One thing that often gets lost when calculating the cost of a remodel are the fees and interest associated with your form of payment. For instance, if you take out a home equity loan, you may pay up to 5 percent of the amount in closing costs and be charged a monthly maintenance fee.
Not only must you factor in the upfront costs you may be charged, but you need to account for any regular payments in your monthly budget to ensure you can afford them. If using your credit cards means you have to pay a $200 minimum monthly payment that you can't really afford, then you may want to hold off on doing the renovation or look for a more affordable funding source.
Extra Living Expenses
The other thing that sometimes gets overlooked when budgeting for a kitchen renovation is any extra living expenses you may incur during the project. Depending on how extensive the renovation is, you may not be able to actually use the kitchen while it's being remodeled. Therefore, you need to budget for meals at restaurants or fast-food joints. If you choose not to stay in your home while the kitchen is being done, then you also need to add in fees for temporary housing (e.g. hotel).
Other related expenses that may come up include fees for a storage unit, moving truck rental, temporary kitchen appliances (e.g. portable stove, microwave), and coverings for furniture. If you're not sure what type of extra expenses may crop up, ask people in your social network who have had kitchen renovations about their experiences. You could learn a lot about how the remodel is likely to impact your life and what you need to do to financially prepare for it.
For more information about budgeting for a kitchen remodel or to get started on creating the kitchen of your dreams, contact a local renovation contractor like those at Kavin Construction.Share