This article was published in the Property Trader.co.za Magazine dated Friday 29 August 2008.

Making sure there’s a budget to cover the costs when you undertake home renovations is of course essential, but you also need to be wary of the hidden costs that could break the bank.

Follow up:

“Often home-improvement enthusiasts don’t build in a big enough contingency for the unexpected costs that could arise during the course of remodelling. In fact, most people have a tendency to underestimate their renovation costs,” says Dr Piet Botha, chairman of the Nationlink estate agency group.

When it comes to hidden costs it is worth remembering, for example, that the contractor’s quote on a renovation job is at best an estimate. Unplanned work to repair or replace outdated plumbing and electrical wiring, for example, can hold up your renovation plans and mean hefty additional labour and equipment costs.

Any rise in material costs in the course of a contract can also impact on an estimate. “Material prices may increase between the time you receive a quote and the day renovation work actually begins, which could be three to six months down the line,” says Botha.

Indeed, he says, eager home renovators would be well advised to add 30% to their original budget to cope with such unexpected costs.

Meanwhile, if you opt for the do-it-yourself renovation, be sure to apply for the correct municipal permits or approvals to carry out any alteration involving an addition or structural change to the home.

Failure to do so can result in a fine and / or an order to demolish your renovation at your cost. Permit fees depend on the size and nature of the renovation and can be based on the estimated cost of the job.

Your DIY budget should also make allowance for the extra cost of materials you may have initially forgotten, tools that could save on time and labour, and repair of any expected damage.