One in five Australian renovators set aside no money at all as a contingency.
The alarming statistic, discovered through a recent survey conducted by jobs website ServiceSeeking.com.au, could dramatically influence the success of home renovations.
“An accurate and extensive budget, with at least 5 per cent contingency, will give your renovation the best chance of success,” ServiceSeeking.com.au CEO Jeremy Levitt says.
“Not enough people set aside money in case of disaster, and this can really affect how stressful the renovation process is.”
A third of couples who put no money aside for contingency argued about their renovation. Disputes arise from under-budgeting, overspending and underestimating the duration of their home improvement.
Comparatively, just 18 per cent of those who ensured they had a contingency of at least 5 per cent of their overall budget had disputes over the renovation process.
It’s not surprising then that, for 65 per cent of people, sticking to budget is incredibly important.
Forty per cent of renovators have tackled a whole house renovation; 36 per cent have updated kitchens; and 32 per cent upgraded bathrooms.
Despite the large-scale renovations taking place, too many Australians still don’t have adequate contingency.
“With no contingency, there’s no room to go over budget,” Levitt says.
“That means when surprises crop up, as they inevitably do, people run into strife and many must forego aspects of the renovation they most desire. Always have backup funds in case of disaster,” he suggests.
(Statistics were from a survey of more than 2,200 ServiceSeeking customers.)