RENOVATING IN SOUTH AFRICA

Remodelling can be a great way to transform a tired property into your dream home. However, undertaking a renovation project isn't always smooth sailing, and not all upgrades are created equal.


                                              

                                                     Image by wayhomestudio on Freepik

“Renovating a property can significantly enhance its value, improve functionality, and increase aesthetic appeal. A well-executed renovation will transform a dated home into a modern, comfortable living space, making it more attractive to potential buyers if you ever decide to sell,” says Claude McKirby, Co-Principal of Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs.

However, while the benefits are substantial, it’s crucial to approach renovations with careful planning and consideration because mistakes can be frustrating, stressful, and very costly.

Some projects might seem like unnecessary expenses upfront, but avoiding costly renovation mistakes can save you significant money in the long run. Proper planning, using quality materials, and hiring experienced professionals are investments that pay dividends down the road.

Here’s why avoiding upfront costs can end up being more expensive:

Redoing Shoddy Work Renovations done incorrectly or with poor workmanship often need to be redone sooner, which can double or even triple your overall costs.

DIY Pitfalls Attempting major projects yourself without proper skills can lead to costly mistakes that may violate municipal regulations, create safety hazards, or devalue your home. Simple errors can also compromise your home’s structural integrity.

Long-term Value High-quality renovations add lasting value to your home. Working with skilled designers and builders ensures smart space planning and high-end finishes that maximise return on investment if you eventually sell.

Claude McKirby highlights some potentially expensive renovation mistakes to avoid:

1. Renovating Too Soon

If you’ve just purchased your home and it’s habitable, live in it for a while before beginning renovations. This way, you can figure out what elements of the current layout work and which don’t. From where you drop the groceries to how the living zones flow, understanding your daily routines will help you design a more practical and comfortable space rather than purely focusing on aesthetics.

2. Neglecting to Set Up a Comprehensive Budget

One of the most common and costly mistakes is failing to set a realistic and comprehensive budget. Without a detailed budget, unexpected expenses can quickly add up, leading to financial strain. Ensure you account for all materials, labour, and permits, as well as a contingency fund for unforeseen issues.

3. Ignoring Building Permits and Codes

Skipping necessary building permits and ignoring local building codes can lead to serious legal and financial consequences. Unpermitted work can result in fines, require costly modifications to comply with regulations, and complicate future property sales. A Cape Town property developer was fined a record R1million in May 2024 for building an apartment block without the necessary approvals. Always ensure your building/ renovation plans are up to code and properly permitted.

4. Underestimating the Importance of Planning

Rushing into renovations without a clear plan can lead to disjointed results and costly changes down the line. Spend time meticulously planning every aspect of the renovation, from design and materials to timelines and contractor schedules. A detailed plan helps prevent mistakes and ensures a cohesive final product.

5. Overlooking the ROI of Renovations

While personal enjoyment is important, consider the return on investment (ROI) for each renovation. Some upgrades, such as kitchen and bathroom remodels, typically offer higher ROI than others. Prioritise renovations that increase property value, especially if you plan to sell in the near future.

6. Choosing Inexpensive, Low-Quality Materials

Opting for the cheapest materials can be tempting, but it often leads to higher costs in the long run. Low-quality materials wear out quickly, requiring frequent repairs or replacements. Invest in durable, high-quality materials that ensure longevity and maintain the value of your renovation.

7. Skipping Professional Help

Attempting complex renovations without professional assistance can result in subpar workmanship and costly mistakes. While DIY projects can be satisfying, recognize when it’s necessary to hire experienced professionals. Builders, architects, engineers and interior designers bring valuable expertise that can save money and ensure a high-quality outcome.

8. Over-capitalising for the Neighbourhood

Renovating a property far beyond the standard of neighbouring homes can result in diminished returns. Over-capitalising (spending more than you get back when selling) can make it difficult to recoup renovation costs if the home is priced too high for the area. Check the ceiling price for similar homes in your area; it’s no use spending R200 000 on renovations when you can realistically only recoup R50 000 when the time comes to sell.

9. Ignoring Structural Issues

Focusing solely on aesthetic improvements while neglecting structural issues can lead to significant problems. Structural deficiencies, such as foundation cracks or outdated electrical systems, can compromise safety and lead to costly repairs. Address these critical issues before embarking on cosmetic upgrades.

10. Inadequate Research on Contractors

Hiring the wrong contractor can be one of the most expensive mistakes. Poor workmanship, delays, and unforeseen additional costs can derail your renovation. Conduct thorough research, check references, and ensure contractors are licensed with relevant authorities, e.g. NHBRC, and Workers Compensation Fund. A reliable contractor is key to a successful renovation.

11. Neglecting to Create a Contingency Plan

Even with meticulous planning, renovations can – and often do – encounter unexpected challenges. Failing to have a contingency plan can lead to significant stress and financial strain. Set aside at least 10-20% of your budget for unforeseen issues, ensuring you can handle surprises without derailing the entire project. The older the house, the higher the percentage contingency you will need to set aside.

“Renovating a property offers numerous benefits, from enhancing comfort and functionality to increasing market value. However, avoiding costly mistakes is crucial for a successful renovation,” concludes McKirby.

While upfront quality costs may sting, avoiding those expenses is ultimately far more expensive due to the inevitable rework and remediation needed down the line. Investing in your renovation from the start is truly the most cost-effective approach. Approach your renovation with care and diligence to create a home that brings joy and lasting value.


Reference
Bartlett Communications (11 June 2024)."11 Expensive Renovation Mistakes to Avoid". (Press Release)