Due to the fact that renovation is often an emotional decision, Goslett advises homeowners to have a set budget before starting and to try stick to it as much as possible.
As a rule of thumb, the renovation cost should not be more that 25 percent of the estimated value of the home.
"Setting a renovation budget will also require the homeowner to do some research regarding the associated costs. Certain elements may cost more than expected, so this will need to be planned for ahead of time. A lack of financial planning could result in a poorly completed or half-finished project, either of which could affect the value of the property negatively," says Goslett.
"Some homeowners may be tempted to undertake the renovations themselves to mitigate costs. However, this is generally not recommended practice unless the homeowner is qualified to do so. Badly completed DIY renovations can cost far more to rectify than if the job was done professionally from the start."
Although purchasing property should be considered as a long term investment, it is very seldom that a homeowner will stay in the same home for their entire lives. Goslett says that this is why it is important to carefully consider renovation plans and how they could affect the value of the home and the homeowner’s financial wellbeing.
"Often circumstances change and a property no longer meets the homeowner’s requirements, so perhaps the most important question is whether it is wise to renovate an existing property, or if it would make more financial sense to invest in another home that meets all of their needs," concludes Goslett.